The Indirect Method for the Preparation of the Operating Activities

question 19

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 income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
• D) Is required if the company is a merchandiser.
• E) Must not be used in all circumstances.

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Definitions:

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A tropical legume plant native to Papua New Guinea, known for its edible leaves, flowers, roots, and pods.

Human Blindness

A condition where a person lacks visual perception due to physiological or neurological factors.