Which of the Following Statements About the Statement of Cash

question 40

Multiple Choice

Which of the following statements about the statement of cash flows is TRUE?

• A) The indirect method and the direct method will both show the same end results.
• B) The direct method begins with net income and adjusts to calculate operating cash flows.
• C) The indirect method shows three types of cash flows, but the direct method does not.
• D) The operating activities section of both the direct and the indirect method are the same.

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Definitions:

Coefficient Of Variation

A measure of relative variability calculated as the ratio of the standard deviation to the mean.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable about its mean.

5-number Summary

A descriptive statistics tool that consists of the minimum, first quartile, median, third quartile, and maximum of a data set.

Z-score

A statistical measure that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.