When Preparing a Statement of Cash Flows Using the Direct

question 17

Multiple Choice

When preparing a statement of cash flows using the direct method, a net loss reported on the income statement will

• A) automatically result in a cash outflow from operating activities.
• B) be included in financing activities.
• C) be disclosed as a note to the statement of cash flows.
• D) not be included on the statement at all.

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Report

A detailed written account of a situation, event, or research, often used to convey information or findings.

Close

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Proposal

A formal offer or plan submitted for consideration, approval, or discussion to achieve a specific goal or project.