Which of the Following Are Methods That Are Used to Prepare

question 22

Multiple Choice

Which of the following are methods that are used to prepare a statement of cash flows?
I. Use information obtained directly from the primary records of cash transactions.
II. Use information in the accrual-based statement of profit or loss and statement of financial positions but remove the effect of non-cash items.
III. Use information in the accrual-based statement of profit or loss and statement of financial positions but add the effect of non-cash items.

• A) I, II and III
• B) I and III
• C) II and III
• D) I and II

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Definitions:

Normal Probability Distribution

A bell-shaped distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A framework for measuring the extent of divergence or distribution in a collection of quantities.

Probability Density Function

A function that describes the likelihood of a continuous random variable to take on a particular value.

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely within a certain interval.