The Direct Method for the Preparation of the Operating Activities

Multiple Choice

The direct method for the preparation of the operating activities section of the statement of cash flows:

A) Separately lists each major item of operating cash receipts.
B) Separately lists each major item of operating cash payments.
C) Separately lists each major item of operating cash receipts and cash payments.
D) Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
E) All of these answers are correct.