Ask Question
BusinessBusiness
27 May, 17:55

Cash flows from operating activities

A. Must be presented using the direct method of disclosure.

B. Must be presented using the indirect method of disclosure.

C. Should be presented using the direct method, but use of the indirect method of disclosure is allowed.

D. Can be presented in any logical format if cash flow per share of common stock is clearly disclosed.

+3
Answers (2)
  1. 27 May, 18:12
    0
    The correct answer is letter "C": Should be presented using the direct method, but use of the indirect method of disclosure is allowed.

    Explanation:

    Cash flow from operating activities is a portion of the Statement of Cash Flows that are included after the Balance Sheet and Income Statements in a company's Financial Statements. Cash flow from operating activities shows up in the first portion of the cash flow statement. The cash flow from financial activities demonstrated using the indirect or direct method.
  2. 27 May, 21:41
    0
    Answer: The correct answer is "C. Should be presented using the direct method, but use of the indirect method of disclosure is allowed.".

    Explanation: Cash flows from operating activities should be presented using the direct method, but use of the indirect method of disclosure is allowed.

    According to IAS 7, the cash flow statement can be presented by both methods, in which operation, investment and financing activities must be taken into account and differentiated.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Cash flows from operating activities A. Must be presented using the direct method of disclosure. B. Must be presented using the indirect ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The $40 million lottery payment that you have just won actually pays $2 million per year for 20 years. The interest rate is 8%. a. If the first payment comes in 1 year, what is the present value of the winnings? b.
Answers (1)
For a given constant required rate of return, the greatest portion of a preferred stockholder's return comes from increases in the price of preferred stock. a. True b. False
Answers (1)
The drug enforcement agency (dea) is a example of ___? a: state-level criminal justice b: federal-level criminal justice c: national - level criminal justice d: local-level criminal justice
Answers (1)
Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year and that real GDP per capita of China is $4,000, and its annual growth rate is 7%.
Answers (1)
Precise Machinery is analyzing a proposed project. The company expects to sell 7,500 units, ±10 percent. The expected variable cost per unit is $314 and the expected fixed costs are $647,000.
Answers (1)
New Questions in Business
Why does unoka consult the oracle? what does the oracle tell him?
Answers (1)
Which job title would be given to someone responsible for supervising production in a manufacturing setting?
Answers (1)
If a management team wishes to boost the company's stock price, then it should consider actions to
Answers (1)
On March 15, Year 1, Kathleen Corp. adopted a plan to accumulate $1,000,000 by September 1, Year 5. Kathleen plans to make 4 equal annual deposits to a fund that will earn interest at 10% compounded annually.
Answers (1)
A natural monopoly's preemption of entry by other firms by exploiting its economies of scale is an example of
Answers (2)
Home » Business » Cash flows from operating activities A. Must be presented using the direct method of disclosure. B. Must be presented using the indirect method of disclosure. C.
Sign Up Forgot Password?