The Direct Method of Preparing the Statement of Cash Flows

question 23

Multiple Choice

The direct method of preparing the statement of cash flows is preferred by the Financial Accounting Standards Board primarily because of the way it reports:

• A)operating activities.
• B)investing activities.
• C)financing activities.
• D)noncash activities.

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Definitions:

Corporate Stewardship

The responsibility corporations take on to manage their economic, social, environmental, and governance practices sustainably.

Confidential Information

Sensitive data or knowledge that is not to be shared with the public or unauthorized persons, often to maintain privacy, security, or competitive advantage.

Rationality

The quality of being based on logic or reason, often involving the application of clear and coherent thinking.

Publics

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