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:

Production Employees

Workers directly involved in manufacturing goods or providing services in industries such as automotive, electronics, textiles, and food processing.

Machine Job

Work that involves operating or overseeing machinery in a manufacturing process or industrial setting.

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