Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $387,000. If the direct method of preparing the operating section of the statement of cash flows was used: OA net cash provided by operating activities would be less than $387,000. OB. net cash provided by operating activities would be more than $387,000. OC. net cash provided by financing and investing activities would equal $387,000. OD. net cash provided by operating activities would be the same, $387,000.
Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $387,000. If the direct method of preparing the operating section of the statement of cash flows was used: OA net cash provided by operating activities would be less than $387,000. OB. net cash provided by operating activities would be more than $387,000. OC. net cash provided by financing and investing activities would equal $387,000. OD. net cash provided by operating activities would be the same, $387,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $387,000. If the direct method of preparing the operating section of the statement of cash flows was used:
OA. net cash provided by operating activities would be less than $387,000.
O B. net cash provided by operating activities would be more than $387,000.
OC. net cash provided by financing and investing activities would equal $387,000.
OD. net cash provided by operating activities would be the same, $387,000.
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