Which of the Following Statements Is TRUE of the Direct

question 105

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 provided by 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) There is no difference in the way the operating activities section is presented.

---

Definitions:

Sustainable Competitive Advantage

A long-term advantage that a company possesses, making it more competitive than others and difficult to replicate.

Labour Market

The supply of available workers in relation to available employment.

Skills

The abilities and expertise that individuals possess, which are developed through training, practice, and experience, relevant to performing specific tasks.

Sense of Urgency

A mindset that emphasizes the importance of acting promptly and efficiently to address issues or opportunities, fostering a culture of responsiveness and proactivity.