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Assume That a Statement of Cash Flows Reports Increases and Decreases

Question 42

Multiple Choice

Assume that a statement of cash flows reports increases and decreases in current asset accounts. Which of the following is true?


A) The statement was prepared using the direct method.
B) Increases and decreases in current assets are reported when using both the direct and indirect methods.
C) The statement was prepared using the indirect method.
D) Increases and decreases in current assets are not reported on the statement of cash flows.

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