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

question 135

Multiple Choice

Under the direct method of preparing the operating section of the statement of cash flows, net cash provided by financing activities is $498,000. If the indirect method of preparing the statement of cash flows was used:

• A)net cash provided by financing activities would be less than $498,000.
• B)net cash provided by financing activities would be more than $498,000.
• C)net cash provided by financing activities would be the same, $498,000.
• D)net cash provided by operating activities would equal $498,000.

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Definitions:

Chorionic Villus Sampling

A genetic testing method involving the extraction of chorionic villi samples from the placenta before birth.

Chromosomal Abnormalities

Genetic disorders resulting from changes in the structure or number of chromosomes, leading to various physical and/or intellectual abnormalities.

Chorion

The outermost fetal membrane in mammals, including humans, contributing to the formation of the placenta.

Tissue

Groups of cells in a body that perform a specific function, such as muscle or connective tissue.