Which of the Following Statements Regarding the Reporting of Operating

question 33

Multiple Choice

Which of the following statements regarding the reporting of operating cash flows using the direct method is true?

• A)Although most U.S.companies use the indirect method,the Financial Accounting Standards Board (FASB)prefers the direct method of accounting for cash flows from operating activities.
• B)The FASB prefers the indirect method of calculating cash flows from operations because it gives a more accurate calculation of cash provided by operating activities.
• C)The direct method results in a larger amount of cash flow from operating activities than does the indirect method.
• D)The direct and indirect methods use different presentations for cash flows from investing and financing activities.

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Definitions:

Array

A systematic arrangement of similar objects, typically in rows and columns, or a data structure in computer science that consists of a collection of elements identified by at least one index or key.

David Marr's Model

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Bottom-Up Knowledge

Knowledge processing that starts with the senses and the actual perception of stimuli, moving towards higher-level cognitive functions.

Primal Sketch

A concept in visual perception that refers to the initial representation of visual information in the brain, outlining shapes and locations of objects.