In Developing the Cash Flows from Operating Activities Most Companies

question 158

Multiple Choice

In developing the cash flows from operating activities most companies in the U. S.

• A) use the direct method.
• B) use the indirect method.
• C) present both the indirect and direct methods in their financial reports.
• D) prepare the operating activities section on the accrual basis.

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Definitions:

Social Policies

Strategies, principles, and actions that aim to improve the welfare and quality of life of the population, often through governmental intervention.

Welfare Reform

Legislative changes intended to improve the efficiency and effectiveness of welfare systems, often by promoting work capability among beneficiaries and reducing dependency.

Personal Responsibility Act

A legislative measure aimed at encouraging individuals to take responsibility for their actions, often in the context of welfare reform or healthcare legislation.

Social Security

A government program that provides financial assistance to people with inadequate or no income, especially the elderly and disabled.