Under the Indirect Method of Preparing the Operating Section of the Statement

question 19

Multiple Choice

Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $277,000. If the direct method of preparing the operating section of the statement of cash flows was used:

• A)net cash provided by operating activities would be the same, $277,000.
• B)net cash provided by operating activities would be more than $277,000.
• C)net cash provided by operating activities would be less than $277,000.
• D)net cash provided by financing and investing activities would equal $277,000.

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Definitions:

Mucus

A slippery secretion produced by, and covering, mucous membranes primarily in the respiratory, digestive, and reproductive systems, aiding in protection and lubrication.

Muscle

Muscle is a tissue in animals that contracts to produce movement, consisting of smooth, skeletal, and cardiac types.

Nervous

Pertaining to the nerves or nervous system, the network in organisms for transmitting signals between different body parts.

Adipose Tissue

A type of connective tissue that is specialized in storing energy in the form of fat, also serving as an important insulator and cushion for bodily organs.