Which of the Following Statements Is True of the Direct

question 18

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 flow from 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.

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Definitions:

Reaction Formation

A psychological defense mechanism in which a person unconsciously replaces unacceptable thoughts or feelings with their opposites.

Phallic Stage

A phase in Freud's psychosexual development theory, occurring from about ages 3 to 6, where the libido's focus is on the genital area.

Psychosexual Development

A Freudian theory that proposes that child development occurs in a series of stages which are characterized by sexual pleasures focusing on different parts of the body.

Flirtatious

Exhibiting behavior aimed at attracting or engaging someone romantically or sexually through acts or remarks that suggest interest without explicit intention.