Which Method of Preparing the Statement of Cash Flows Starts

question 136

Multiple Choice

Which method of preparing the statement of cash flows starts with the components of income, the individual revenues and expenses, but not gains and losses, then adds or subtracts the same balance sheet changes involving the same operating accounts?

• A)direct method
• B)fixed method
• C)indirect method
• D)funds flow method
• E)predetermined method

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Definitions:

Shelf Registrations

A regulatory provision that allows an issuer to register a new issue of securities without having to sell the entire issue at once.

Qualified Issuers

Entities that have been approved to issue securities based on regulatory standards.

Prefiling

The process or activities that occur prior to officially submitting or filing a document with the relevant authorities.

Registration Statement

A set of documents, including a prospectus, filed with the SEC for a new securities issue.