The Indirect Method for the Preparation of the Operating Activities

Multiple Choice

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