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According to M.O. theory, which is an INCORRECT statement for H2-?
Indirect Approach
A method for preparing the cash flow statement where net income is adjusted for non-cash transactions, deferred taxes, and changes in working capital.
Investing Activities
Financial transactions and events involving the purchase and sale of long-term assets and investments, as reported in the cash flow statement.
Direct Approach
A method of financial reporting or problem solving that involves straightforward, clear communication without indirectness.
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