The Only Difference Between the Direct and Indirect Methods of Preparing

question 114

Multiple Choice

The only difference between the direct and indirect methods of preparing the statement of cash flows is the manner in which the

• A)cash flows from financing activities is presented.
• B)the schedule of non-cash items is presented.
• C)cash flows from operating activities is presented.
• D)cash flows from investing activities is presenteD.The direct and indirect methods only relate to cash flows from operating activities.

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Definitions:

Routine Orders

Orders that are made regularly and often automatically, involving products or services that are needed on an ongoing basis.

Reorders

The process of placing additional orders for a product or service that has been previously purchased or consumed.

Nonfinancial Rewards

Benefits or incentives provided to employees or individuals that do not involve monetary compensation, such as recognition, training, or flexible work arrangements.

Internal Magazine

A publication produced by a company for its employees, stakeholders, or members, often containing company news, updates, and relevant information.