Which Method of Preparing the Operating Activities Section of a Statement

question 79

Multiple Choice

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

• A)the direct method
• B)the indirect method
• C)Both the direct and indirect methods.
• D)Neither the direct method nor the indirect method.

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Definitions:

Reward Circuits

Neural pathways in the brain that regulate the motivation and pleasure response, critical in learning and addiction.

Pure Enjoyment

The experience of pleasure or satisfaction obtained without any ulterior motive or external incentive.

Desire

A strong feeling of wanting to have something or wishing for something to happen.

Cerebral Cortex

The outer layer of the brain's cerebrum, responsible for complex functions including thought, perception, and voluntary movement.