Which Method of Reporting Cash Flows from Operating Activities Is

question 74

Multiple Choice

Which method of reporting cash flows from operating activities is used by most businesses in preparing the statement of cash flows?

• A)Accrual method
• B)Direct method
• C)Indirect method
• D)Computational method

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Definitions:

Contractual Obligations

Refers to the legally enforceable promises and duties that parties agree upon in a contract.

Legal Restrictions

Laws or regulations that limit or regulate certain activities or behaviors in order to protect public interest.

Negative Emotions

Feelings that are unpleasant or undesirable, such as sadness, anger, or fear.

On-the-job

Engaged in or pertaining to the performance of tasks, duties, or responsibilities within a work environment. A second explanation emphasizing practical, hands-on experience obtained while working.