All of the Following Statements Related to Reporting Cash Flows

question 1

Multiple Choice

All of the following statements related to reporting cash flows from investing and financing activities are true except:

• A)Reporting of financing activities is the same under the direct method and indirect method.
• B)Changes in noncurrent liability accounts and equity accounts are analyzed to determine cash flows from financing activities
• C)Changes in noncurrent asset accounts,current notes receivable,and current investments are analyzed to determine cash flows from investing activities.
• D)The direct method applies accrual accounting while the indirect method applies cash basis accounting.
• E)Reporting of investing activities is the same under the direct method and indirect method.

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