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Which of the Following Is True Concerning the Direct Method

Question 78

Multiple Choice

Which of the following is true concerning the direct method of calculating operating cash flows?


A) does not tie the net income reported on a company's income statement to the net cash provided from operating activities
B) does not show how the changes in the elements of a company's operating cycle affected its operating cash flows
C) reports a company's operating cash inflows separately from its operating cash outflows
D) All of these choices are true concerning the direct method.

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