A Disadvantage of the Indirect Method of Reporting Cash Flows

question 88

True/False

A disadvantage of the indirect method of reporting cash flows provided (used) by operating activities is that the difference between the net amount of cash flows from operating activities and profit is not emphasized.

---

Definitions:

Metronome

A device used by musicians that marks time at a selected rate by giving a regular tick sound.

Meat Powder

A substance made from dried and pulverized meat, used as nutritional supplement or in cooking.

Contingency View

A management approach suggesting that organizational effectiveness stems from fitting design and operational practices to contextual factors.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.