In Preparing the Operating Activities Section of the Statement of Cash

question 2

Multiple Choice

In preparing the operating activities section of the statement of cash flows, most companies in Canada prefer to

• A) use the direct method.
• B) use the indirect method.
• C) present both the indirect and direct methods in their financial reports.
• D) prepare the operating activities section on the accrual basis.

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Definitions:

Confidence Interval

A selection of numerical values, culled from sample data, likely to hold within it the value of an unrevealed population parameter.

Population Mean

The average of all the data points in a population, representing the central tendency of the entire population's values.

Sample Mean

The average value of a set of data points taken from a sample of a larger population.

Population Parameter

A numerical value that represents a characteristic or feature of an entire population.