Companies Have the Option of Using Either the Direct or Indirect

question 76

True/False

Companies have the option of using either the direct or indirect method to prepare the operating section of the statement of cash flows.

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Definitions:

Encoder

A rotary device that transmits position information; a device that transmits a fixed number of pulses for each revolution.

Digital Signal

An electronic signal that represents data as a series of discrete values, typically used in digital electronics and communication.

DC

Direct Current, a type of electrical current where the flow of electric charge is in a constant direction, contrasted with alternating current (AC).

AC

Alternating Current, a type of electrical current in which the flow of electric charge periodically reverses direction.