The Only Part That Differs in a Statement of Cash

question 157

Multiple Choice

The only part that differs in a statement of cash flows prepared by the direct method from one prepared by the indirect method is the ________.

• A) financing activities section
• B) investing activities section
• C) operating activities section
• D) non-cash investing and financing activities section

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of a firm's shareholders' wealth maximization.

Long-Term Investments

Assets intended to be held for more than one year, including stocks, bonds, real estate, and other financial instruments.

Financial Markets

Platforms or systems where buyers and sellers engage in the trading of financial assets such as stocks, bonds, currencies, and derivatives.