Which of the Following Statements About the Statement of Cash

question 53

Multiple Choice

Which of the following statements about the statement of cash flows is FALSE?

• A) The indirect method and the direct method will produce the same amount of cash flow.
• B) The indirect method begins with net income and adjusts to calculate operating cash flows.
• C) Both the direct and indirect methods include 3 types of cash flows.
• D) The operating activities section of both the direct and the indirect method are the same.

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Definitions:

Commutes

The act of traveling between one’s home and place of work on a regular basis, which can impact one’s work-life balance and daily schedule.

Distraction

Anything that diverts attention away from the focus of activity, potentially decreasing productivity or quality of work.

Mind Map

A visual diagram that represents ideas, tasks, or other items linked to and arranged around a central concept.

Recall

The transfer of information from long-term memory into short-term memory.