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:

Epithalamus

A posterior segment of the diencephalon of the brain, involved in the regulation of sleep-wake cycles and the secretion of melatonin from the pineal gland.

Corpora Quadrigemina

Located in the midbrain, the corpora quadrigemina is composed of four colliculi - two superior and two inferior - involved in visual and auditory reflexes.

Medulla Oblongata

The medulla oblongata is a part of the brainstem that plays a crucial role in autonomic functions, including respiration, heart rate, and blood pressure regulation.