Answer the Following: A.What Are the Similarities and Differences Between the Direct and the Direct

question 20

Essay

Answer the following:
a.What are the similarities and differences between the direct and indirect methods of preparing the statement of cash flows?
b.In practice,which method of preparation is used for the statement of cash flows and why?
c.Is the indirect method of presenting the statement of cash flows required by the IASB?
d.Briefly discuss how unrealized gains and losses arising from held-for-trading investments that are not designated as cash equivalents are reported on the statement of cash flows.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

Standard Error

The standard deviation of the sampling distribution of a statistic, typically the mean, indicating the variability of an estimate.

Mean

The mean is the average of a set of numbers, calculated by adding them all together and then dividing by the count of those numbers.

Z-statistic

A statistical metric that measures the number of standard deviations a data point is from the mean, used in hypothesis testing.