The Indirect and Direct Methods

question 95

Multiple Choice

The indirect and direct methods:

• A)Are used by companies about equally in actual practice.
• B)Affect the presentations of operating,investing,and financing activities.
• C)Arrive at different amounts for net cash flows from operating activities.
• D)Are two allowable methods to present operating activities in the statement of cash flows.

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Definitions:

Identical Twins

Twins who originate from the same fertilized egg, sharing exactly the same genetic material and often having very similar appearances.

Monozygotic Twins

Twins derived from a single fertilized egg, leading them to be genetically identical.

Senses

Biological systems used by organisms to detect and process sensory information from the environment, including sight, hearing, touch, taste, and smell.

Hearing

The sensory process by which sound waves are detected by the ear and interpreted by the brain.