In the Operating Activities Section of the Statement of Cash

question 52

Multiple Choice

In the operating activities section of the statement of cash flows,we start with net income when using:

• A)The direct method.
• B)The indirect method.
• C)Both the direct and the indirect method.

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Definitions:

Private Corporation

An entity owned by private individuals or entities, not publicly traded, and not owned or operated by the government.

Sole Proprietorship Company

A business entity owned and operated by a single individual, with no legal distinction between the owner and the business.

Risk Analysis

The process of identifying and assessing the potential risks that may negatively impact an organization's capital and earnings.

Portfolio Analysis

The process of evaluating the performance, risk, and return of investment assets within a portfolio.