Under the Direct and Indirect Methods of Reporting the Statement

question 71

Multiple Choice

Under the direct and indirect methods of reporting the statement of cash flows, only

• A) the operating activities section is different.
• B) the financing activities section is different.
• C) the investing activities section is different.
• D) the operating and financing activities sections are different.

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Definitions:

Cigarettes

are small cylinders of finely cut tobacco leaves rolled in thin paper for smoking, often containing chemical additives.

Indirect and Regressive

Pertaining to taxes that are the same rate for all, regardless of income, often resulting in a higher tax burden on lower-income individuals compared to higher-income ones.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which does not necessarily align with the calendar year.

Federal Government

The federal government is the national government, which holds the ultimate authority over a federated country, responsible for executing laws, and managing national affairs and foreign policy.