Which Statement Concerning the Indirect Method of Preparing a Cash

question 23

Multiple Choice

Which statement concerning the indirect method of preparing a cash flow statement is true?

• A) The indirect method is more costly to implement that the direct method.
• B) The investing and financing sections of a cash flow statement differ depending on whether the direct or indirect method of preparation is used.
• C) The direct, rather than the indirect method of preparation, is the method preferred by standard setters.
• D) With the indirect method depreciation is deducted from profit to arrive at net cash from operating activities.

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Definitions:

Quantitative Trait

A phenotype that can be measured and is influenced by the combined effects of multiple genes and environmental factors.

Phenotype

The set of observable characteristics or traits of an organism, resulting from the interaction of its genotype with the environment.

Genetic Variation

The differences in DNA sequences among individuals in a population, which can lead to variations in physical appearance, behavior, and susceptibility to diseases.

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Organisms whose cells contain a nucleus enclosed within a membrane, including animals, plants, and fungi.