Which Method of Preparing the Operating Activities Section of a Statement

question 147

Multiple Choice

Which method of preparing the operating activities section of a statement of cash flows reports major classes of gross cash receipts and cash payments for revenues and expenses?

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

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Definitions:

Cultural Norm

Shared behaviors, values, or beliefs that are considered acceptable or standard within a specific culture.

Conventional Wisdom

A widely accepted belief or opinion that may not always be based on fact or thorough knowledge.

Sexual Stereotype

Preconceived beliefs or ideas about the sexual behaviors, roles, or traits of men and women, often resulting in discrimination or bias.

Survey Research

A method of gathering information from a small group to make inferences about a larger group.