Which Method Shows the Net Cash Flows from Operating Activities

question 36

Multiple Choice

Which method shows the net cash flows from operating activities without presenting the individual cash inflows and outflows from those activities.

• A)indirect method
• B)direct method
• C)both methods
• D)neither method

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Definitions:

Product Variety

Refers to the assortment of different goods and services that a firm offers to its customers, highlighting the diversity within a product line.

Welfare Enhancing

Activities, policies, or strategies that contribute to an improvement in the general well-being and quality of life of individuals or communities, often through the provision of public goods or redistribution of resources.

ATC

Average Total Cost; the total cost of production divided by the total output produced.

Economic Profits

The remaining amount after deducting total expenses from the total income, taking into account all direct and indirect costs.