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NEW QUESTION: 1
In practice, companies who use the direct method in presenting cash flows from operations:
A. are not required to report cash flows not incurred during the ordinary course of business.
B. must also disclose cash flows from operations using the indirect method.
C. must classify interest paid as an investing activity.
D. must be privately held or closely held corporations.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The advantage of the indirect method is it reconciles differences between net income and cash flows from operating activities.
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NOTE:Each correct selection is worth one point.
Answer:
Explanation:
Explanation
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