The Indirect Method for the Preparation of the Operating Activities

question 61

Multiple Choice

The indirect method for the preparation of the operating activities section of the statement of cash flows:

• A) Separately lists each major item of operating cash receipts.
• B) Separately lists each major item of operating cash payments.
• C) Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
• D) Separately lists each major item of operating cash receipts and payments.
• E) All of these answers are correct.

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Definitions:

Geometry

The branch of mathematics concerned with the properties, measurement, and relationships of points, lines, angles, surfaces, and solids.

Alkene

Hydrocarbons that are unsaturated and possess a minimum of one double bond between carbon atoms, identified by the formula CnH2n.

3-Methylpent-2-Ene

An unsaturated hydrocarbon with the formula C6H12, highlighting a branch and a double bond in its structure.

Hydrogenation

A chemical reaction that involves the addition of hydrogen (H2) across unsaturated bonds in an organic compound, typically to reduce or saturate it.