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

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Definitions:

Weighted-Average Method

An inventory costing method that averages the cost of all similar goods available during the period.

Periodic Inventory

An inventory system where the inventory count and cost of goods sold calculations are conducted at specific intervals.

FIFO

FIFO (First-In, First-Out) is an inventory valuation method where goods first purchased or produced are the first ones sold.

Periodic

Occurring or repeating at regular intervals.