Which of the Following Statements About the Indirect Method of Presenting

question 29

Multiple Choice

Which of the following statements about the indirect method of presenting cash flow from operations is NOT true?

• A) The direct and indirect methods give the same cash flow from operations.
• B) Australian companies do not need to report information about the indirect method.
• C) Depreciation expense is added back to operating profit in the indirect method.
• D) Decreases in accounts payable are deducted from operating profit in the indirect method.

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Definitions:

Capillary Endothelium

The thin layer of endothelial cells lining the inner surface of capillaries, playing a crucial role in the exchange of substances between the blood and tissues.

Partial Pressure

The pressure that a single component of a gas mixture would exert if it occupied the entire volume of the mixture at the same temperature.

Osmotic Gradient

A difference in the concentration of solutes across a semipermeable membrane, which drives osmosis, the movement of water to balance solute concentrations.

First Lungs

Refers to the initial evolutionary development of lungs in the ancestor of terrestrial vertebrates, facilitating air breathing.