The First Item Reported in the Operating Activities Section for a Statement

question 41

Multiple Choice

The first item reported in the operating activities section for a statement of cash flows prepared according to the indirect method is:

• A) Cash.
• B) Net income.
• C) Increase decrease) in accounts receivable.
• D) Cash received from customers.
• E) Adjustments to net income.

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Definitions:

Desirability

The degree to which something appeals to or is sought after by individuals, often influencing their choices and behaviors.

Set Goals

The process of establishing specific, measurable, achievable, relevant, and time-bound objectives to guide actions and measure success.

Higher Levels

relates to positions, status, or stages that are advanced or superior in rank, quality, or degree in any hierarchical or structured context.

Performance

The execution or accomplishment of work, actions, tasks, or functions measured against preset known standards of accuracy, completeness, cost, and speed.