Question

Which of the following activities is computed differently using the two methods of formatting a Statement...

Which of the following activities is computed differently using the two methods of formatting a Statement of Cash Flows?

A. Financing activities

B. Investing activities

C. Operating activities

D. Both operating activities and investing activities

2. One disadvantage to the corporate form of organization is:

A. limited liability.

B. transfer of ownership policies.

C. ability to raise capital.

D. government regulations.

Business   Accounting   
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Answer #1

Activities is computed differently using the two methods of formatting a Statement of Cash Flows is Operating Activities. So the format of cashflow from operating activities as per direct method and indirect method is completly different.

C. Operating activities

One disadvantage to the corporate form of organization is Government Regulations. Corporates have to follow stringent policies like payment of taxes, filling annual report, regular meetings, declaration of dividend etc.

D. government regulations.

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