The Indirect Method for Preparation of the Operating Activities Section

question 32

Multiple Choice

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

• A) For income statement items involving operating activities that do not affect cash inflows or outflows.
• B) For income statement items involving operating activities that do not affect cash inflows or outflows and for changes in noncash current assets and current liabilities.
• C) To eliminate gains and losses resulting from investing and financing activities.
• D) For changes in noncash current assets and current liabilities.
• E) All of these answers are correct.

---

Definitions:

Studying Personality

The field of psychology that examines individual differences in characteristics, traits, and behaviors.

Psychosocial Development

A theory proposing stages through which individuals progress throughout their lives, involving challenges in the domains of personal and social development.

Generativity

A stage in Erik Erikson's theory of psychosocial development, usually occurring in middle adulthood, where individuals seek to guide the next generation or contribute to society.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans.