Cash Generated from Operating Activities May Be Computed and Reported

question 89

Multiple Choice

Cash generated from operating activities may be computed and reported using

• A) the direct method only.
• B) the indirect method only.
• C) either the direct and indirect methods.
• D) the combination method.

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Definitions:

Financing Activities

Transactions and events that affect a company's long-term liabilities and equity, including debt issuance and equity transactions.

Statement Of Cash Flows

A financial statement that details the inflows and outflows of cash for a business over a specific period, highlighting operating, investing, and financing activities.

Significant Noncash

Transactions or activities that have a significant impact on an entity's financial statements without involving cash flows.

Statement Of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.