The Indirect Method of Preparing the Operating Section of the Statement

question 17

Multiple Choice

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

• A)is the least 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:

Purchasing Decision

The process of evaluating and choosing among alternative products or services to fulfill a need or desire.

Selling Process

A series of steps taken by a salesperson to persuade potential buyers to purchase a product or service, from initial contact to closing the sale.

FAB Process

A sales strategy focusing on Features, Advantages, and Benefits of a product or service, aimed at highlighting its uniqueness and value to the customer.

Strong Desire

An intense longing or yearning for something, which can drive motivation and action toward achieving specific goals or outcomes.