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

question 46

Multiple Choice

Under the direct method of preparing the operating section of the statement of cash flows,net cash provided by financing activities is $558,000.If the indirect method of preparing the statement of cash flows was used:

• A)net cash provided by financing activities would be less than $558,000.
• B)net cash provided by financing activities would be more than $558,000.
• C)net cash provided by financing activities would be the same,$558,000.
• D)net cash provided by operating activities would equal $558,000.

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Definitions:

Missing Value

Refers to the absence of data in a dataset or a variable in an equation or formula.

Missing Value

A data point that is lost or not recorded in a dataset or experiment.

Compounded Monthly

Interest on an investment calculated each month on the principal and previously earned interest.

Equivalent Amount

A sum of money that is equal in value to a different amount in another currency or under different conditions.