Which Method of Preparing the Operating Activities Section of a Statement

question 176

Multiple Choice

Which method of preparing the Operating Activities section of a statement of cash flows reports major classes of gross cash receipts and cash payments for revenues and expenses?

• A)The direct method
• B)The indirect method
• C)Both the direct method and indirect methods
• D)Neither the direct method nor the indirect method

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Definitions:

Carrying Capacity

The maximum population size that an environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.

Molecules

The smallest unit of a chemical compound that can exist, consisting of two or more atoms bonded together.

Compounds

Substances formed from two or more chemical elements that are chemically bonded together, resulting in new properties distinct from those elements alone.

Synergistic Effect

A situation where the combined action of two or more factors, agents, or substances results in a greater effect than expected from their individual effects.