Which Statement Is True with Respect to the Preparation of the Cash

question 13

Multiple Choice

Which statement is true with respect to the preparation of the cash flows from operating activities' section?

• A)It can be calculated by using the direct or indirect methods.
• B)Cash flows are calculated as the difference between revenues and expenses.
• C)It is always equal to accrual accounting income.
• D)Cash payments for depreciation and dividends are reported in the operating activates sections.

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Definitions:

Tennis

A racquet sport in which two or four players hit a lightweight ball back and forth across a net on a rectangular court.

Deductive Step

A part of reasoning where the conclusion is necessarily derived from the premises.

Modus Ponens

A logical argument form that, given premises "If P, then Q" and "P," concludes "Q," exemplifying a valid deductive reasoning pattern.

Disjunctive Syllogism

A valid argument form in logic where, given a disjunction and the negation of one of its terms, one logically infers the truth of the other term.