Match the terms with the definitions.
-A method of preparing the statement of cash flows in which the revenues and expenses reported on the income statement are adjusted to reflect the amount of cash received or paid for each item.
A)cash equivalents
B)direct method
C)financing activities
D)indirect method
E)investing activities
F)noncash investing and financing activities
G)operating activities
H)statement of cash flows

Question

Quizplus · Accepted Answer

The direct method of preparing the statement of cash flows involves adjusting the revenues and expenses reported on the income statement to reflect the actual cash received or paid for each item.

Match the Terms with the Definitions