Regarding the Direct and Indirect Methods of Preparing the Statement

question 136

Multiple Choice

Regarding the direct and indirect methods of preparing the statement of cash flows,which of the following statements is TRUE?

• A) The indirect method and the direct method will produce a different amount of net cash provided by investing activities.
• B) The indirect method starts with net income and adjusts it to net cash provided by (used for) operating activities.
• C) The direct and indirect methods include different types of cash flows in the investing activities section.
• D) The indirect method includes all non-cash activities, whereas the direct method includes only the cash activities.

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Definitions:

Delhi Sultanate

A historical period of Muslim rule in the Indian subcontinent from the 13th to the 16th centuries.

Qutb al-Din Aybak

The founder of the Mamluk dynasty in India and the first Sultan of the Delhi Sultanate starting in 1206.

Muhammad of Ghor

A ruler from Ghor, Afghanistan, who played a significant role in the establishment of Muslim rule in India in the 12th century.

Emerald Buddha

A revered jade statue of the sitting Buddha, considered the palladium of Thailand, housed in Bangkok's Wat Phra Kaew.