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:

Loan Guarantees

Financial guarantees provided by a third party (like a government or financial institution) ensuring loan repayment in case the borrower defaults.

Export Development Corporation

An organization that offers financial services, insurance, and support to companies exporting goods and services from their home country.

Export Transactions

Commercial activities that involve selling goods or services to a buyer in another country.

Legal Jurisdiction

The authority given to a legal body like a court to administer justice within a defined field of responsibility, geographically or subject-wise.