The Direct Method of Preparing the Statement of Cash Flows

question 10

Multiple Choice

The direct method of preparing the statement of cash flows

• A)results in more cash from operating activities,but less cash from investing activities,and the same total cash flow as the indirect method.
• B)converts each item on the income statement to its cash equivalent.
• C)reports interest and dividends received in the investing activities section.
• D)All of these choices.

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Definitions:

Transfers

The process of moving employees from one position, location, or job to another within the same organization.

Promotions

The advancement of an employee to a higher-ranked position with greater responsibility, usually accompanied by an increase in salary.

Organization Responsibility

The obligations and duties an organization has towards its stakeholders, including ethical conduct, legal compliance, and social accountability.