The First Item Reported in the Operating Activities Section for a Statement

question 85

Multiple Choice

The first item reported in the operating activities section for a statement of cash flows prepared according to the indirect method is:

• A) Cash.
• B) Cash received from customers.
• C) Increase (decrease)in accounts receivable.
• D) Net income.
• E) Adjustments to net incomE.

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Definitions:

Letters

Characters that are used in an alphabet to represent sounds and form words.

Word Superiority Effect

A phenomenon in cognitive psychology that people have better recognition of letters presented within words as opposed to isolated letters or letters within non-words.

Familiar Word

A word that is well-known or easily recognized by an individual, contributing to easier understanding and processing of language.

Letter

In this context, "Letter" is not specifically defined as a psychological or physiological term; thus, it might be referring to a form of written communication.