The Direct Method for the Preparation of the Operating Activities

question 86

Multiple Choice

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

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

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Definitions:

Cognitive-Behavioral View

A psychological approach that combines cognitive and behavioral techniques to address dysfunctional emotions, behaviors, and thoughts.

Fragmented Sense

A partial or incomplete sense of awareness, often perceived in a scattered or incoherent form.

Psychodynamic Theorist

A professional who studies and applies theories focusing on the unconscious mind, internal conflicts, and past experiences influencing current behavior.

Psychosis

A mental state characterized by a disconnection from reality, often involving delusions or hallucinations.