Under the Direct Method of Cash Flow, Which of the Following

question 84

Multiple Choice

Under the direct method of cash flow, which of the following is not included in the statement of cash flows?

• A)Changes in accounts receivable
• B)Changes in accounts payable
• C)Changes in inventories
• D)Changes in amortization

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Definitions:

Capital Stock

The total physical, non-human assets of a company or economic system used in the production of goods and services.

Retail Value

The price at which goods are sold to the final consumer, inclusive of markups by retailers.

Directly

In a straightforward or unmediated way, often referring to a direct cause and effect relationship or manner of communication.

Indirectly

In a way that is not directly evident or straightforward; involving an intermediary step or process.