In Developing the Cash Flows from Operating Activities, Most Companies

question 137

Multiple Choice

In developing the cash flows from operating activities, most companies in the United States

• 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.

Understand characteristics and behaviors of high-performing teams.

Learn the basic steps and importance of a nominal group session.

Recognize strategies to prevent groupthink.

Understand the importance and criteria for effective brainstorming.

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Definitions:

CPA Licenses

Certifications granted to accounting professionals who meet the education, experience, and examination requirements of their jurisdiction, allowing them to practice as Certified Public Accountants.

Insuring Assets

The act of obtaining insurance coverage to protect company assets from losses due to risks like fire, theft, or damage.

Technologically Advanced

Referring to the use or development of new and innovative technologies in processes, products, or services.

Monitoring Errors

The process of detecting and recording mistakes, particularly in the context of accounting or data management.