Assume That a Statement of Cash Flows Reports Increases and Decreases

question 40

Multiple Choice

Assume that a statement of cash flows reports increases and decreases in current asset accounts. Which of the following is true?

• A)Increases and decreases in current assets are not reported on the statement of cash flows.
• B)Increases and decreases in current assets are reported when using both the direct and indirect methods.
• C)The statement was prepared using the direct method.
• D)The statement was prepared using the indirect method.

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Definitions:

Dyslexia

A category of learning disabilities involving a severe impairment in the ability to read and spell.

Dyslexia

A learning disorder characterized by difficulty reading due to problems identifying speech sounds and learning how they relate to letters and words.

Severe Impairment

A condition that significantly limits one or more of an individual's major life activities.

Learning Disability

A disorder in one or more of the basic psychological processes involved in understanding or in using language, spoken or written, which may manifest itself in an imperfect ability to listen, think, speak, read, write, spell, or do mathematical calculations.