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.