The Indirect and Direct Methods of Preparing the Statement of Cash

question 60

Multiple Choice

The indirect and direct methods of preparing the statement of cash flows are identical except for the

• A) significant noncash activity section.
• B) operating activities section.
• C) investing activities section.
• D) financing activities section.

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Definitions:

Assignment

The transfer of a contract right from one person to another.

Frustration of Purpose

A legal defense allowing parties to terminate a contract when an unforeseen event undermines the contract's principal purpose, rendering it impossible to fulfill.

Doctrine

A belief or set of beliefs held and taught by a church, political party, or other group.

Intention

A psychological state involving a commitment or determination to carry out a specific action or achieve a specific outcome.