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.

---

Definitions:

Age

The length of time that a person or object has existed, often considered in years from the date of birth for people.

Fast Mapping

The cognitive ability to quickly link new words with their meanings, a skill especially evident in young children's language acquisition.

Hearing Problems

Issues related to the ability to perceive sound, ranging from minor difficulties in understanding speech to complete deafness.

Cognitive Limitations

Restrictions in cognitive functioning that can affect learning, memory, problem-solving, and other mental activities.