Which of the Following Statements About Preparation of the Statement

question 124

Multiple Choice

Which of the following statements about preparation of the statement of cash flows is correct?

• A)GAAP allows the indirect method only.
• B)GAAP allows the direct method only.
• C)GAAP allows either the indirect or direct method.
• D)Although GAAP allows either method for the preparation of the operating activities section of the statement of cash flows,the indirect method must be used to prepare the investing activities section of the statement of cash flows.

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Definitions:

Bulimia Nervosa

A serious eating disorder marked by binge eating followed by methods to avoid weight gain.

SSRIs

SSRIs, or Selective Serotonin Reuptake Inhibitors, are a class of antidepressants that work by increasing the levels of serotonin in the brain, thereby improving mood.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight, resulting in severe restrictions on food intake and excessive weight loss.