Which of the Following Statements Is True of the Direct

question 133

Multiple Choice

Which of the following statements is true of the direct and indirect methods of preparing the statement of cash flows?

• A)The indirect method and the direct method will produce the same amount of net cash flow from operating activities.
• B)The investing activities section is the only section that differs between the direct and indirect methods.
• C)The indirect method shows three types of cash flows,but the direct method does not.
• D)The operating activities section of both the direct and the indirect methods are the same.

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Definitions:

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Cognitive Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Psychologically Inconsistent

Exhibiting behaviors or thoughts that are not in harmony with one's usual psychological patterns.

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring in group settings that foster anonymity.