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.

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Definitions:

Indirectly Impacts

Refers to effects or consequences of actions that occur through an intermediate factor or mechanism, rather than being a direct result.

Directly Impacts

Has an immediate and clear effect on something or someone.

Society

A structured community of people bound together by similar traditions, institutions, or nationality.

Behaving Ethically

Acting in ways that are considered morally right and fair in personal and professional settings.