Which of the Following Is Not Treated Differently for the Direct

question 87

Multiple Choice

Which of the following is not treated differently for the direct and indirect methods of reporting cash flows on the statement of cash flows?

• A) share based compensation
• B) bad debts expense
• C) unrealized gains or losses for available-for-sale securities
• D) income from equity method investment

---

Definitions:

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, used for analysis and decision-making.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its most liquid assets without having to sell inventory.

Financial Data

Quantitative information about financial conditions, transactions, and performance of a person, company, or entity.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services sold on credit.