Which Statement Is True with Respect to the Preparation of the 'Cash

question 16

Multiple Choice

Which statement is true with respect to the preparation of the 'cash flows from operating activities' section of the statement of cash flows?

• A)It is based on accrual income.
• B)Operating cash flows are the difference between revenues and expenses.
• C)It can be prepared using the direct or indirect methods.
• D)Cash payments for depreciation are reported in the operating activities section.

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Definitions:

Precedence

The rules in programming languages that define the order in which operations are processed, such as the order of arithmetic operations.

Operators

Operators are symbols that instruct the compiler to perform specific mathematical, relational, or logical operations and produce a final result.

Binary Arithmetic

A fundamental area of computer science focusing on arithmetic operations, such as addition and multiplication, using binary numbers.

Unary Arithmetic

Operations in mathematics and computer science that operate on a single operand or value to produce a new value.