Assume That a Statement of Cash Flows Reports Increases and Decreases

question 28

Multiple Choice

Assume that a statement of cash flows reports increases and decreases in current asset accounts. Which of the following is true?

• A)The statement was prepared using the direct method.
• B)Increases and decreases in current assets are reported when using both the direct and indirect methods.
• C)The statement was prepared using the indirect method.
• D)Increases and decreases in current assets are not reported on the statement of cash flows.

---

Definitions:

Same Tone

A phrase that might imply identical pitch or sound quality; however, without context, its specific meaning is unclear. Likely not a standard key term in most disciplines.

Muscle

A tissue in the body composed of fibers capable of contracting to effect bodily movement.

Shortens

The process or action of making something shorter in length or duration.

Striated Muscle

Muscle tissue that is marked by transverse dark and light bands, found in the skeletal muscles and cardiac muscle, enabling voluntary movements.