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g Statement of Cash Flows

g Statement of Cash Flows

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Acct 102

Which of the following statements regarding Statement of Cash Flows is true? Multiple Choice The indirect method of preparation of the Statement of Cash Flows begins with Net Income, and then adds back the noncash items such as depreciatic expense. The direct méthod and the indirect method differ in all three sections of the Statement of Cash Flows. Proceeds from sales of plant assets are shown in the investing activities section as a subtraction. LEGO In the direct method of preparation of Statement of Cash Flows, interest and dividends received are reflected in the Investing Activities section.
Transcribed Image Text:Which of the following statements regarding Statement of Cash Flows is true? Multiple Choice The indirect method of preparation of the Statement of Cash Flows begins with Net Income, and then adds back the noncash items such as depreciatic expense. The direct méthod and the indirect method differ in all three sections of the Statement of Cash Flows. Proceeds from sales of plant assets are shown in the investing activities section as a subtraction. LEGO In the direct method of preparation of Statement of Cash Flows, interest and dividends received are reflected in the Investing Activities section.
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