A Statement of Cash Flows Prepared Under the DIRECT Method

question 16

Multiple Choice

A statement of cash flows prepared under the DIRECT method starts with

• A) net income.
• B) gross profit.
• C) cash received from customers.
• D) income from operations.

---

Definitions:

Trade Agreement

A contract between two or more nations that outlines the rules and guidelines for trade between them.

NAFTA

The North American Free Trade Agreement, a trilateral trade bloc in North America created by Canada, Mexico, and the United States.

United States

is a federal republic in North America comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Ordinance

A piece of legislation enacted by a municipal authority covering matters not already covered by federal or state law.