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.

Understand the principles of organic synthesis and reagent selection.

Identify and apply methods for transforming basic organic structures into more complex molecules.

Determine the major products of organic reactions.

Understand the role of stereochemistry in organic reactions.

---

Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time due to use, wear, or obsolescence.

Double-Declining-Balance

A method of accelerated depreciation that doubles the rate at which an asset loses value compared to straight-line depreciation.

Units-Of-Output

A depreciation method that allocates the cost of an asset based on the number of units it produces.

Straight-Line

A method of calculating depreciation of an asset by evenly spreading the cost over its useful life.