Which of the Following Statements Is false

question 32

Multiple Choice

Which of the following statements is false?

• A) The method of preparing the operating activities section of a statement of cash flows which adjusts net income to remove the effects of deferrals and accruals for revenues and expenses is the indirect method.
• B) The method of preparing the operating activities section of a statement of cash flows which reports major classes of gross cash receipts and cash payments for revenues and expenses is the direct method.
• C) The FASB prefers the direct method of preparing the operating activities section of the statement of cash flows.
• D) Most companies use the direct method of preparing the operating activities section of the statement of cash flows.

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Definitions:

Eustress

Positive stress that is motivational and enhances one's functioning, as opposed to distress which has a negative effect.

Diligence

Characterizes careful and persistent work or effort.

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and behavioral expression.

Attitude

A psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor.