The Direct Method of Presenting a Statement of Cash Flows

question 47

Multiple Choice

The direct method of presenting a statement of cash flows

• A) Classifies activities differently from the indirect method
• B) Involves reconciling accrual net income to net cash flows from operating activities
• C) Shows the major classes of operating cash receipts and payments
• D) Includes noncash financing transactions

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Definitions:

Short Message Service

A text messaging service component of most telephone, internet, and mobile device systems that allows users to send and receive short text messages.

Memos

Short written communications typically used within an organization to inform or instruct employees.

Internal Communication

The transmission of information and messages within an organization among its members or employees.

Text Messaging

The act of sending short messages electronically, typically from one mobile phone to another.