The Indirect Method for Preparation of the Operating Activities Section

question 1

Multiple Choice

The indirect method for preparation of the operating activities section of the statement of cash flows involves adjustments

• A)For income statement items involving operating activities that do not affect cash inflows or outflows
• B)To eliminate gains and losses resulting from investing and financing activities
• C)For changes in noncash current assets and current liabilities
• D)For income statement items involving operating activities that do not affect cash inflows or outflows and for changes in noncash current assets and current liabilities
• E)All of these

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