If a Company Uses the Direct Method of Calculating Cash

question 28

True/False

If a company uses the direct method of calculating cash flows from operating activities,it must adjust net income for gains or losses when selling property,plant,and equipment.A company must make adjustments for gains and losses only when the indirect method is used to present cash flows from operating activities.

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Definitions:

Power Distance

A cultural dimension that expresses the degree to which less powerful members of a society accept and expect that power is distributed unequally.

Hofstede's Dimensions

A framework for understanding cultural differences along six dimensions: power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, long-term orientation vs. short-term normative orientation, and indulgence vs. restraint.

Mercenary Culture

An organizational culture characterized by a focus on results and efficiency, often at the expense of employee loyalty and long-term commitment.

Making Money

The process of earning a profit or generating income through various means, such as employment, investment, or operating a business.