A Major Disadvantage of the Indirect Method of Reporting Cash

question 176

True/False

A major disadvantage of the indirect method of reporting cash flows from operating activities is that the difference between the net amount of cash flows from operating activities and net income is emphasized.

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Definitions:

Computers

Electronic devices that are capable of executing a series of arithmetic or logical operations.

U.S. Investment Spending

Money expended on capital goods in the United States, which includes expenditures on equipment, infrastructures, and buildings.

Computing Technology

The branch of technology that encompasses computers and their software, hardware, and networking capabilities.

Productivity Growth Rate

The productivity growth rate measures how the efficiency of production in an economy increases over time, often reflected in the output per unit of input, such as labor hours, over a specific period.