Presented Below Is the Operating Activities Section of a Statement

question 109

Multiple Choice

Presented below is the operating activities section of a statement of cash flows for the current year: Which method of preparing the operating activities section was used?

• A)The direct method.
• B)The indirect method.
• C)Either method.
• D)Cannot be determined without further information.

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Definitions:

Market Opportunities

Refers to openings in the market where a business can potentially increase its profitability or growth by identifying and capitalizing on these areas.

Buying Organization

An entity focused on purchasing goods and services, typically seeking to optimize procurement processes and costs.

Incongruent

Lacking harmony, consistency, or compatibility between aspects or elements.

Supply Objectives

Goals aimed at ensuring the efficient and effective procurement, management, and distribution of materials and products.