The Differences in the Indirect Method and the Direct Method

question 72

Multiple Choice

The differences in the indirect method and the direct method of the statement of cash flows are evident in which section?

• A) Operating activities
• B) Investing activities
• C) Financing activities
• D) Cash reconciliation section

---

Definitions:

Date

A specific point in time, often defined by day, month, and year, which can be associated with events, deadlines, or appointments.

Holder

A person or entity that possesses a negotiable instrument, such as a check or bond, and has the legal right to enforce it.

Gift

A voluntary transfer of property or funds without receiving anything in return or expectation of return.

Negotiable Instrument

A written promise or order to pay a specific amount of money that can be transferred to another party under certain conditions.