The Direct Method for the Preparation of the Operating Activities

question 155

Multiple Choice

The direct 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 and cash payments.
• B)Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.
• C)Reports a different amount of cash flows from operations than if the indirect method is used.
• D)Is required if the company is a merchandiser.
• E)Is required by the FASB.

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Definitions:

Replicating

The process of copying or reproducing something. In the context of biology, it often refers to the duplication of DNA molecules.

Apoptosis

Programmed cell death, a normal part of growth and development, removing damaged or unnecessary cells without causing harm to the organism.

Development

The process through which organisms grow and develop, involving changes in size, shape, and function over time.

Cancer Prevention

Strategies that aim to reduce the risk of developing cancer, including lifestyle changes and medical interventions.