The Indirect Method Calculates the Net Cash Flow from Operating

question 6

Multiple Choice

The indirect method calculates the net cash flow from operating activities by adjusting net profit or loss for the effects of:

• A) Changes during the period in inventories and operating receivables and payables.
• B) Non-cash items such as depreciation,provisions,deferred taxes.
• C) All other items included in the net income for which the cash effects are investing or financing cash flows.
• D) All of these

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Definitions:

Osteoporosis

A condition in which the bones become brittle, fragile, and thin, often brought about by a lack of calcium in the diet.

Brittle

Describes materials or objects that easily break or shatter under stress without significant deformation.

Fragile

Easily broken, damaged, or vulnerable to harm or failure under pressure or stress.

Lead Poisoning

A medical condition caused by the accumulation of lead in the body, which can damage various organ systems, particularly the nervous system, and is particularly harmful to children.