If a Company Uses the Indirect Method to Prepare Its

question 51

True/False

If a company uses the indirect method to prepare its statement of cash flows,it must provide a supplementary schedule showing the computation of net cash flow from operating activities using the direct method.

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Definitions:

Effervesces

Reacts with acids to release carbon dioxide gas, often indicating the presence of carbonate minerals like calcite.

Metallic Luster

A type of shine from the surface of a mineral that resembles the appearance of polished metal, indicating a certain mineral composition.

Dilute HCl

A solution made by mixing hydrochloric acid with water, commonly used in chemical analysis and experiments to test for the presence of carbonate minerals.

Crystal Form

The external shape displayed by a crystal or a group of crystals that grew together, reflecting the symmetrical arrangement of the internal lattice.