Which Method of Preparing the Operating Activities Section of a Statement

question 157

Multiple Choice

Which method of preparing the operating activities section of a statement of cash flows reports major classes of gross cash receipts and cash payments for revenues and expenses?

• A)the direct method
• B)the indirect method
• C)Both the direct method and the indirect method.
• D)Neither the direct method nor the indirect method.

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Definitions:

Soluble Chemical

A substance capable of being dissolved in a solvent, particularly water, to form a solution.

Poor Solubility

Describes a substance's low capability to dissolve in a solvent, typically referring to solids in liquids.

Quartz

A hard, crystalline mineral composed of silicon and oxygen atoms, common in the Earth's crust and used in various applications due to its durability and piezoelectric properties.

Weathering

The breakdown of rocks, soils, and minerals through contact with the Earth's atmosphere, water, and biological organisms, leading to the formation of sediment.