Which Method of Preparing the Operating Activities Section of a Statement

question 79

Multiple Choice

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

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

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Definitions:

Observing from Distance

The act of monitoring or studying someone or something from a place that is physically removed from the subject to minimize interference or influence.

Study Disclosure

The act of informing participants about the nature, purpose, and potential risks of a research study before their participation.

Systematic Observations

Carefully planned and structured methods of collecting data by watching subjects in a specific setting.

Phenomenon Understanding

The comprehension or insight into events or occurrences that are observable, often leading to new knowledge or scientific discoveries.