When the Indirect Method Is Used to Prepare the Statement

question 63

Multiple Choice

When the indirect method is used to prepare the statement of cash flows,what is the starting point of the operating activities section?

• A) Net income as reported on the income statement
• B) Total assets as reported on the balance sheet
• C) Sales as reported on the income statement
• D) Cash collections from customers

---

Definitions:

Stable

A situation or condition that is not subject to change or likely to remain constant over time.

Ethical Conduct

The practice of adhering to moral standards and principles in behavior or decision-making, often according to a professional code or societal expectations.

Eastern Europeans

People originating from countries located in the Eastern part of Europe, including nations such as Poland, Ukraine, and Russia, among others.

Bluffing

The act of misleading or deceiving someone about one's true intentions or capabilities, often to gain an advantage.