The Direct Method of Preparing the Operating Section of the Statement

question 31

Multiple Choice

The direct method of preparing the operating section of the statement of cash flows:

• A)is the most popular method used.
• B)reports all cash receipts and cash payments from operating activities.
• C)reconciles net income to net cash provided by operating activities.
• D)reports different amounts for investing and financing activities than the direct method.

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Definitions:

Heterozygote

An organism having two different alleles of a specific gene, resulting in a mixed genotype.

Phenotypic

Relating to the observable characteristics or traits of an organism, which result from the interaction of its genotype with the environment.

Genotypic

Relating to the genetic constitution of an organism, defining its specific set of genes.

Pedigree

Chart of genetic relationship of family individuals across generations.