The Indirect Method for the Preparation of the Operating Activities

question 68

Multiple Choice

The indirect method for the preparation of the operating activities section of the statement of cash flows:

• A) Separately lists each major item of operating cash payments.
• B) Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
• C) Separately lists each major item of operating cash receipts.
• D) Separately lists each major item of operating cash receipts and payments.
• E) All of these answers are correct.

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Definitions:

Royal African Company

A trading company chartered by England in the late 17th century, which held a monopoly on English trade with the West African coast, particularly in slaves for the transatlantic slave trade.

Sub-Saharan Africa

The area of the African continent located south of the Sahara Desert, characterized by diverse cultures, languages, and economies.

Slave-Catching Raids

Acts conducted to capture and return enslaved people who had escaped, often involving violence and carried out under laws like the Fugitive Slave Acts in the United States.

New England

A region in the northeastern United States comprising six states (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont), known for its colonial history, distinct seasons, and academic institutions.