Question 5: The presentation of the major classes of operating cash receipts (such as receipts from
customers) less the major classes of operating cash disbursements (such as cash paid for merchandise) is
best described as the
a)
b)
Direct method of calculating net cash provided or used by operating activities.
Cash method of determining income in conformity with generally accepted accounting principles.
Format of the statement of cash flows.
Indirect method of calculating net cash provided or used by operating activities.
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