Presented Below Is the Operating Activities Section of a Statement

question 73

Multiple Choice

Presented below is the operating activities section of a statement of cash flows for 2014: Which method of preparing the operating activities section was used?

• A)The direct method.
• B)The indirect method.
• C)Either method.
• D)Cannot be determined without further information.

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Definitions:

Maximum Level

The highest or utmost point, degree, or volume of something that can be achieved or reached.

Total Revenue

Total earnings from business activities such as selling goods or providing services, before removing any operational costs.

Barrier To Entry

Elements that create barriers or obstacles, making it difficult for new entrants to join a particular market or business sector.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases leading to a reduction in average costs.