The Direct Method for the Preparation of the Operating Activities

question 214

Multiple Choice

The direct method for the preparation of the operating activities section of the statement of cash flows:

• A) Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.
• B) Is required by the FASB.
• C) Reports a different amount of cash flows from operations than if the indirect method is used.
• D) Separately lists each major item of operating cash receipts and cash payments.
• E) Is required if the company is a merchandiser.

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Definitions:

Feedback

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Organizational Examples

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