Which of the Statements Below Is Correct When Comparing the Direct

question 110

Multiple Choice

Which of the statements below is correct when comparing the direct and indirect methods of reporting operating cash flows?

• A)The direct method starts with net income and makes adjustments to arrive at the net cash provided by or used in operations.
• B)The indirect method starts with cash collected from customers and details cash inflows and outflows from operations.
• C)The indirect method starts with net income and makes adjustments to arrive at the net cash provided by or used in operations.
• D)The net cash provided by or used in operations will be different depending on whether the direct or indirect method is used.

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Definitions:

Supply Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Supply Chain Success

Achieving optimal performance across a supply chain, resulting in efficient production, distribution, and delivery of goods or services.

Supply Chain

A network involving different sectors, teams, executions, data, and logistical support focusing on the passage of a product or service from the origin to the end-user.

Net Value

The actual worth of an asset, business, or investment after deducting all liabilities, obligations, or costs.