The Indirect Method of Preparing a Statement of Cash Flows

question 72

Multiple Choice

The indirect method of preparing a statement of cash flows

• A)eliminates the need for a schedule of noncash investing and financing transactions.
• B)provides a different result than the direct method.
• C)adjusts net income for changes in current accounts.
• D)shows collections from customers rather than the change in Accounts Receivable.

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Definitions:

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