The Direct Method of Preparing the Statement of Cash Flows

question 54

Multiple Choice

The direct method of preparing the statement of cash flows is preferred primarily because of the way it reports:

• A)investing activities.
• B)financing activities.
• C)operating activities.
• D)noncash activities.

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Definitions:

Integuments

Outer protective layers of an organism, which in plants can refer to seed coats and in animals to skin.

Seed-producing Plants

Plants that reproduce through the formation of seeds, encompassing gymnosperms and angiosperms.

Mesozoic Era

A geologic era that occurred from about 252 to 66 million years ago, known for the dominance of dinosaurs and the appearance of flowering plants.

Devonian Period

An era known as the "Age of Fishes," characterized by significant evolutionary advancements in fish and the appearance of early amphibians, occurring from approximately 419 to 359 million years ago.