Which Phrase Below Best Describes the Direct Method for Reporting

question 47

Multiple Choice

Which phrase below best describes the direct method for reporting operating cash flows?

• A)A method that incorporates financing and investing activities into cash flows from operations.
• B)A method employing accrual-based accounting to convert cash flows to GAAP Net Income.
• C)A summary of operating transactions resulting in either a debit or credit to cash.
• D)A series of adjustments to Net Income to arrive at operating cash flows.

---

Definitions:

Linoleic Acid

An essential fatty acid found in many vegetable oils, necessary for healthy human nutrition.

Ethnic Food Choices

Food preferences that are influenced by cultural, religious, or traditional backgrounds.

Dietary Choices

The selection of foods and beverages based on personal preferences, nutritional value, cultural influences, and health considerations.

Canadian Diet

A way of eating and nutritional guidelines that may be characteristic or recommended within Canada, focusing on local foods and balanced nutrition.