Which of the Following Is Not True Regarding the Direct

question 48

Multiple Choice

Which of the following is not true regarding the direct and indirect methods of computing net cash flow from operating activities?

• A)Both methods result in the same dollar amount of cash flow from operating activities.
• B)Both methods involve adjusting entries to the company's books so that the accounting records reflect the figures shown in the statement of cash flows.
• C)Both methods are acceptable to the FASB for reporting purposes.
• D)Both methods convert accrual-based income statement amounts to cash flow results.

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Definitions:

Muscular System

The bodily system that is made up of over 600 muscles, facilitating movement of the body, maintains posture, and circulates blood throughout the body.

NADH

Nicotinamide adenine dinucleotide (NAD) in its reduced form, which is a coenzyme involved in making energy in the body through the process of oxidative phosphorylation.

Citric Acid Cycle

A key metabolic pathway that integrates the energy metabolism of carbohydrates, fats, and proteins through the oxidation of acetyl-CoA, producing ATP.

ATP Synthesis

The biochemical process of creating ATP (adenosine triphosphate), the primary energy carrier in cells, through cellular respiration or photosynthesis.