Which Section(s) of the Statement of Cash Flows Is(are) Identical

question 20

Multiple Choice

Which section(s) of the statement of cash flows is(are) identical under both the direct and indirect methods?

• A)The operating activity section
• B)The investing and financing activity sections
• C)The financing and operating activity sections
• D)The operating, investing, and financing activity sections

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Definitions:

Journal Entry

A record in accounting that documents a business transaction in the general ledger, indicating the accounts and amounts to be debited and credited.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to creditors for goods and services received but not yet paid for.

Interest Revenue

Earnings received for interest.

Fiscal Year

A 12-month period used for accounting purposes and the preparation of financial statements, which may or may not align with the calendar year.