Which Phrase Below Best Describes the Direct Method for Reporting

question 47

Multiple Choice

Which phrase below best describes the direct method for reporting operating cash flows?

• A)A method that incorporates financing and investing activities into cash flows from operations.
• B)A method employing accrual-based accounting to convert cash flows to GAAP Net Income.
• C)A summary of operating transactions resulting in either a debit or credit to cash.
• D)A series of adjustments to Net Income to arrive at operating cash flows.

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Definitions:

Purity

Refers to the state of being free from contaminants or pollutants.

Wave Amplitude

The height of a wave from its mean or rest position to its peak, reflecting the energy or intensity of the wave.

Sound

Waves that propagate through the air or another carrier and can be detected by the ears of people or animals.

Wave Form

A graphical representation of the shape, amplitude, or frequency of a wave, especially as it relates to sound or electromagnetic waves.