Which of the Following Statements Is True About the Indirect

question 10

Multiple Choice

Which of the following statements is true about the indirect method of preparing the operating activities section on a statement of cash flows?

• A) It adjusts cash basis net income to accrual basis net income.
• B) It adjusts accrual basis net income to cash provided by operating activities.
• C) It adjusts accrual basis net income to budgeted net income.
• D) It adjusts cash basis net income to budgeted net income.

---

Definitions:

Accident

An unplanned event that results in injury, damage, or loss.

Paycheque

The physical or electronic means by which an employer disburses wages or salaries to employees.

Incidence Rate

A measure used in epidemiology to assess the frequency of new cases of a disease or condition within a specified population over a certain period of time.

Full-time Employees

Workers who are employed for the standard working hours of an organization, typically benefiting from full employment rights, including salary, benefits, and employment security.