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:

Behaviorists

Psychologists who study observable behaviors and the environmental factors that influence them, often emphasizing the role of learning.

Black Box

In psychology, this term refers to the mind or the brain where internal processes are considered unknowable or not observed directly.

Competencies

A combination of skills, abilities, and knowledge that enables a person to perform a specific task or role effectively.

Self-regulatory Plans

Strategies individuals create and implement to guide their behavior towards achieving personal goals.