In Developing the Cash Flows from Operating Activities, Standard Setters

question 47

Multiple Choice

In developing the cash flows from operating activities, standard setters prefer to

• A) use the direct method.
• B) use the indirect method.
• C) present both the indirect and direct methods in their financial reports.
• D) prepare the operating activities section on the accrual basis.

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Definitions:

Nonessential Terms

Words or phrases that do not add critical information or clarity to a sentence or text, often making it unnecessarily complex or lengthy.

ICD-9

The 9th Revision of the International Classification of Diseases, a method utilized for assigning codes and categorizing data on causes of death from death certificates.

ICD-10

The International Classification of Diseases, Tenth Revision, a medical classification list by the World Health Organization, used for coding diseases, signs, symptoms, and procedures.

Mitral Regurgitation

A condition in which the heart's mitral valve does not close tightly, allowing blood to flow backward in the heart.