2) Which of the following is disclosed separately in a statement of cash flows u

ID: 2393104 • Letter: 2

Question

2) Which of the following is disclosed separately in a statement of cash flows using the indirect method?

Select one:

A. Cash paid to employees and other suppliers

B. Net income

C. Cash received from customers

D. Increase in retained earnings for the period

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3) With reference to the reporting of net cash flow from operating activities, which method do most companies use and why?

Select one:

A. Direct method because it is based on the accrual basis of accounting

B. Indirect method because it is less expensive to prepare

C. Direct method because it requires a supplemental indirect method section

D. Indirect method because it provides better information for decision making

2) Which of the following is disclosed separately in a statement of cash flows using the indirect method

So answer is b) Net income

3) With reference to the reporting of net cash flow from operating activities, which method do most companies use and why

SO answer is d) Indirect method because it provides better information for decision making

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