The Direct Method for the Preparation of the Operating Activities

question 155

Multiple Choice

The direct method for the preparation of the operating activities section of the statement of cash flows:

• A)Separately lists each major item of operating cash receipts and cash payments.
• B)Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.
• C)Reports a different amount of cash flows from operations than if the indirect method is used.
• D)Is required if the company is a merchandiser.
• E)Is required by the FASB.

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Definitions:

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The biological and social distinctions between female and male children.

Developing Vocabulary

The process of acquiring new words and their meanings, fundamental to language development and communication skills.

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A piece of clothing for women or girls that covers the body and extends down over the legs.

Identification

in psychology, the process whereby an individual assimilates an aspect, property, or attribute of another and is transformed, wholly or partially, by the model the other provides.