When Preparing a Statement of Cash Flows, in Which Section

question 55

Multiple Choice

When preparing a statement of cash flows, in which section is it permitted to use either the direct method or the indirect method?

• A)Investing activities
• B)Operating activities
• C)Financing activities
• D)All of these

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Definitions:

Credit Period

The duration of time allowed by a seller to the buyer to pay for the goods or services received, without incurring any additional costs.