Which of the Following Statements Is True Regarding GAAP and Reporting

question 63

Multiple Choice

Which of the following statements is true regarding GAAP and reporting operating activities on the statement of cash flows?

• A) The direct method is required of large companies.
• B) GAAP expresses a preference for the indirect method.
• C) GAAP expresses a preference for the direct method.
• D) GAAP did not express a preference for either the direct or indirect method.

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Definitions:

Medulla Oblongata

The lower portion of the brainstem, controlling vital body functions such as breathing, heart rate, and blood pressure.

Midbrain

A portion of the brainstem that plays an important role in vision, hearing, motor control, sleep/wake, arousal (alertness), and temperature regulation.

Pons

A part of the brain located above the medulla oblongata and in front of the cerebellum, playing key roles in the regulation of breathing and sleep.

Hypothalamus

A region of the brain that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.