The Distinction Between the Indirect and Direct Methods Only Applies

question 27

Multiple Choice

The distinction between the indirect and direct methods only applies to the cash flows from which section?

• A) Operating activities
• B) Financing activities
• C) Investing activities
• D) There is no distinction between the methods.

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Definitions:

Action Items

Specified tasks or activities that need to be completed, often identified in meetings or strategic plans to achieve particular objectives.

Section

A distinct part of a document, book, or legislation that deals with a specific aspect of the subject.

Essential Information

Crucial details or data necessary for understanding a topic, making decisions, or completing tasks.

Credibility

The quality of being believable or trustworthy in character, intention, or authenticity.