A Cash Flow Statement for an Entity Calculates the Cash

question 24

Multiple Choice

A cash flow statement for an entity calculates the cash flow from operations by starting with net income and then makes a series of adjustments to it.What method of calculating cash flow from operations are they using?

• A)Direct method
• B)Indirect method
• C)Net income method
• D)Cash equivalents method

---

Definitions:

Histogram

A graphical representation showing a frequency distribution where the data is grouped into ranges and represented by bars.

Bar Chart

A graphical representation of data using bars of different heights or lengths to compare values across categories.

Ratio Scale

A quantitative scale of measurement that has a true zero-point and units of equal intervals, allowing for the comparison of absolute magnitudes of numbers.

Interval Scale

A type of measurement scale that represents both the order of data points and the exact differences between them, but without a true zero point.