All of the Following Are Arguments in Favor of Using

question 48

Multiple Choice

All of the following are arguments in favor of using the indirect (reconciliation) method as opposed to the direct method for reporting a statement of cash flows except:

• A)By providing a reconciliation between net income and cash provided by operations, the differences are highlighted.
• B)The direct method is nothing more than a cash basis income statement which will confuse and create uncertainty for financial statement users who are familiar with the accrual-based income statements.
• C)The direct method would probably lead to additional preparation cost because the financial records are not maintained on a cash basis.
• D)The indirect method shows higher quality cash flows from investing and financing activities.

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Definitions:

Mathematical Concepts

Fundamental principles or ideas that form the basis of mathematics, including numbers, operations, and properties.

Developmentally Appropriate Practice

Educational practices tailored to meet the developmental needs of children at their specific ages and stages.

Head Start Programs

Early childhood education programs in the United States aimed at enhancing the cognitive and social development of children from low-income families.

Developmentally Appropriate Practice

Educational strategies and practices that are based on the age-specific characteristics and needs of children, promoting optimal learning and development.