The Indirect Method for the Preparation of the Operating Activities

question 24

Multiple Choice

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

• A) Separately lists each major item of operating cash payments.
• B) Is required if the company is a merchandiser.
• C) Must not be used in all circumstances.
• D) Separately lists each major item of operating cash receipts.
• E) Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.

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Definitions:

Opportunities

Circumstances that present chances for progress, advancement, or benefit in various areas of life, including career and personal development.

Social Networking

Utilizing online platforms and communities to build, engage, and maintain social connections for personal or professional purposes.

Herzberg's Theory

A motivational theory, also known as the Two-Factor Theory, which suggests that certain factors in the workplace lead to job satisfaction, while others lead to dissatisfaction.

Motivational Factors

Elements or conditions that inspire individuals to act or behave in a certain manner, aiming to achieve specific goals.