The Two Ways to Format the Operating Activities on the Statement

question 2

Multiple Choice

The two ways to format the operating activities on the statement of cash flows are:

• A)direct and indirect methods.
• B)direct and operating methods.
• C)indirect and net worth methods.
• D)direct and net income methods.

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Definitions:

Interim Dividend

An interim dividend refers to a dividend payment made before a company's annual earnings are calculated and finalized. It's typically issued to shareholders from the profits earned in part of the company's financial year.

Issued Capital

The portion of a company's capital that has been allocated to shareholders in the form of shares.

Consolidated Financial Statements

Financial statements that present the financial position and performance of a parent company and its subsidiaries as if they were a single economic entity.

Statement of Financial Position

Another term for the balance sheet, showing a company's financial status by detailing assets, liabilities, and shareholders' equity at a specific point in time.