Which of the Following Statements About the Statement of Cash

question 37

Multiple Choice

Which of the following statements about the statement of cash flows is correct?

• A) The indirect method starts with income before extraordinary items.
• B) The direct method is known as the reconciliation method.
• C) The direct method is more consistent with the primary purpose of the statement of cash flows.
• D) All of these answers are correct.

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Definitions:

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