The Only Difference Between the Cash Flow Statement Prepared Under

question 120

Multiple Choice

The only difference between the cash flow statement prepared under the indirect method as opposed to the direct method is the manner in which the:

• A)cash flows from financing activities is presented.
• B)schedule of noncash items is presented.
• C)cash flows from investing activities is presented.
• D)cash flows from operating activities is presented.

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Definitions:

Check Is Drawn

The process by which a check is issued by an account holder, instructing their bank to pay a specified sum to a party named on the check.

Check-Processing Time

The duration it takes for a bank to process a check payment, clearing the funds from the payer's account to the payee.

Overdrafts

A financial situation where an individual withdraws or spends more money than is available in their account, leading to a negative balance.

Account-Holder

An individual or entity that owns an account in a bank or similar financial institution.