Which of the Following Statements Is True of the Direct

question 18

Multiple Choice

Which of the following statements is true of the direct and indirect methods of preparing the statement of cash flows?

• A)The indirect method and the direct method will produce the same amount of net cash flow from operating activities.
• B)The investing activities section is the only section that differs between the direct and indirect methods.
• C)The indirect method shows three types of cash flows,but the direct method does not.
• D)There is no difference in the way the operating activities section is presented.

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Definitions:

Standard Error

A measure of the dispersion or variation of the sampling distribution of a statistic.

Level of Significance

The criterion used in statistical testing to decide whether to reject the null hypothesis, represented by a probability value (e.g., 0.05 or 5%).

Standard Error

A measure of the variability of a statistic from sample to sample, often used to quantify the accuracy of a sample mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, representing how spread out the values are from the mean.