When Comparing Net Cash Provided by Operating Activities Using the Indirect

question 76

Multiple Choice

When comparing net cash provided by operating activities using the indirect versus direct methods:

• A) net cash is higher using the indirect method.
• B) net cash is lower using indirect method.
• C) there is no difference between the two methods.
• D) depreciation expense is used in the direct method.

---

Definitions:

Indemnify

To compensate for harm or loss suffered, or to protect someone by promising to cover any damages or losses they might incur.

Exercise Care

The obligation to act with the prudence, caution, and attentiveness of a reasonable person in order to avoid harm to others.

Duties Under Tort Law

Obligations recognized by law for individuals or entities to avoid causing harm or injury to others, breach of which may result in liability.

Agent

A person authorized to act on behalf of another, known as the principal, in business transactions or legal matters.