When the Operating Activities Section of the Statement of Cash

question 33

Multiple Choice

When the operating activities section of the statement of cash flows is reported using the direct method:

• A)Net income is adjusted for changes in noncurrent assets and noncurrent liabilities.
• B)Operating cash receipts minus operating cash payments equals net cash provided (used by)operating activities.
• C)Footnotes to the financial statements disclose the difference between net income and the cash provided or used by financing activities.
• D)The income statement is prepared under the cash basis of accounting.
• E)Noncash investing and financing activities is included in the statement of cash flows.

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Definitions:

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The commercial activity involving the buying and selling of firearms.

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The ability of the media to focus attention on particular events or topics, thereby influencing public perception and priorities.

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The use of internet-based platforms and applications that enable users to interact, share information, and build communities or networks.

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The activity of writing or maintaining a blog, which is a regularly updated website or web page, typically run by an individual or small group, that is written in an informal or conversational style.