Which Method of Preparing the Operating Activities Section of a Statement

question 76

Multiple Choice

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

• A) The direct method
• B) The indirect method
• C) Both the direct and indirect methods
• D) Neither the direct method nor the indirect method

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Definitions:

Anorexia Nervosa

An eating disorder characterized by an extremely low body weight, distorted body image, and an obsessive fear of gaining weight.

Rigidity, Perfectionism

A psychological trait characterized by inflexibility and an overemphasis on flawlessness and order.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight and a refusal to maintain a healthy body weight.

Bulimia Nervosa

An eating disorder characterized by binge eating followed by purging behaviors, such as vomiting or excessive exercise, to prevent weight gain.