The Operating Activities Section of the Statement of Cash Flows

question 15

Essay

The operating activities section of the Statement of Cash Flows can be prepared using either the direct approach or the indirect approach.
Instructions
a) List three cash inflows reported under the direct approach.
b) List three cash outflows reported under the direct approach.
c) List three additions reported under the indirect approach.
d) List three deductions reported under the indirect approach.

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Definitions:

Physiological Time

A concept referring to time as experienced by an organism, including rhythms such as the circadian cycle.

Consumption Situation

A consumption situation refers to the context or environment in which a consumer engages with a product or service, influencing their purchasing decision and experience.

Purchase Environment

The setting or context in which a consumer buys a product or service, including the physical store, online presence, and the overall purchasing atmosphere.

Psychological Situation

The state of an individual's mental and emotional condition in response to their environmental circumstances.