When a Statement of Cash Flows Is Prepared Using the Direct

question 22

Multiple Choice

When a statement of cash flows is prepared using the direct method,

• A)net income is the starting point in determining cash flows from operations.
• B)cash paid for dividends is not included.
• C)the increase in cash is different than when the indirect method is used.
• D)the amount of cash collected from customers is calculated.

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Definitions:

Pathology

The scientific study of disease processes, including the causes, development, and effects on the body.

Spiritual Growth

The process of evolving and expanding one's spiritual awareness, beliefs, and practices.

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