Which Method of Preparing the Operating Activities Section of a Statement

question 164

Multiple Choice

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

• A) direct method
• B) indirect method
• C) balance sheet method
• D) retained earnings method

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Definitions:

Psychodynamic Therapist

A mental health professional who treats individuals by exploring the dynamic interactions between their conscious and unconscious mind.

Schizophrenia

An emotional or behavioral condition defined by abnormal thought processes, feelings, communication, self-awareness, and conduct.

Schizophreniform Disorder

A psychiatric diagnosis that applies to individuals who exhibit symptoms similar to those of schizophrenia, but for a duration of less than six months.

Psychotic Disorder

A mental health condition characterized by a disconnection from reality, manifesting in symptoms like hallucinations, delusions, and disorganized thinking.