The ___ adds up all the various types of cash payments and receipts, including cash paid to suppliers, cash receipts from customers and cash paid out in salaries.
A
Direct method
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B
Indirect method
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C
Cash flow method
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D
None of these
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Solution
The correct option is A
Direct method
The Direct method adds up all the various types of cash payments and receipts, including cash paid to suppliers, cash receipts from customers and cash paid out in salaries.