The Indirect and Direct Methods of Preparing the Statement of Cash

question 134

Multiple Choice

The indirect and direct methods of preparing the statement of cash flows are identical except for the

• A) financing activities section.
• B) investing activities section.
• C) operating activities section.
• D) significant noncash activities section.

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Definitions:

Brokers

Individuals or entities that act as intermediaries between buyers and sellers in various transactions, often in markets such as real estate, stocks, or insurance.

Intermediation Revenue Model

A business model where a company earns revenue by acting as an intermediary between two or more parties in a transaction.

Transactions

refer to the action of conducting business, usually involving the exchange of goods, services, or funds between parties.

Licensing Revenue Model

Earning revenue by giving permission to other parties to use protected intellectual property (patents, copyrights, trademarks) in exchange for fees.