Under the Indirect Method of Preparing the Operating Section of the Statement

question 64

Multiple Choice

Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $207,000. If the direct method of preparing the operating section of the statement of cash flows was used:

• A) cash provided by operating activities would be the same, $207,000.
• B) cash provided by operating activities would be more than $207,000.
• C) cash provided by operating activities would be less than $207,000.
• D) cash provided by financing and investing activities would equal $207,000.

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Definitions:

Economically Depleted

A condition where resources, assets, or energy have been consumed to the point of diminishing returns, affecting economic vitality.

Affordable Oil

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Phase In

The gradual integration or implementation of a policy, system, equipment, or procedure over a period of time.

Energy Alternatives

Renewable and sustainable energy sources used in place of traditional fossil fuels, such as solar, wind, and hydro power.