The Indirect and Direct Methods

question 36

Multiple Choice

The indirect and direct methods:

• A)are used by companies about equally in actual practice.
• B)affect the presentations of operating,investing,and financing activities.
• C)arrive at different amounts for net cash flows from operating activities.
• D)are two allowable methods to present operating activities in the statement of cash flows.

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Definitions:

Steam Engine

A heat engine that performs mechanical work using steam as its working fluid.

England

A country that is part of the United Kingdom, known for its rich history, contributions to the arts and sciences, and as a global financial center.

Basic Innovations

Fundamental changes and introductions of new ideas, products, or methods that significantly alter industries or markets.

Economic Development

The process by which the economic well-being and quality of life of a nation, region, or local community are improved according to targeted goals and objectives.