The Indirect Method for the Preparation of the Statement of Cash

question 242

Multiple Choice

The indirect method for the preparation of the statement of cash flows starts ________.

• A)with net income and makes adjustments for all the items that are not cash
• B)by converting every number on the income statement to its cash amount
• C)by estimating the sources of cash and the uses of cash
• D)with cash collected from customers

---

Definitions:

Presenters

Individuals who deliver presentations or speeches in front of an audience.

Process

A series of actions or steps taken in order to achieve a particular end.

Produce

To create, manufacture, or bring forth goods, services, or results through a process of combining or arranging resources or efforts.

Participate

To take part or become involved in an activity or event.