The Direct Method of Reporting Operating Cash Flows

question 99

Multiple Choice

The direct method of reporting operating cash flows:

• A) Is recommended, but not required, by IFRS.
• B) Is used by most companies.
• C) Is recommended by IFRS.
• D) Is not required by IFRS.
• E) All of these answers are correct.

---

Definitions:

Consumer Lease

An agreement in which a consumer agrees to rent a good, service, or property for personal, family, or household use for a specified period.

Unconscionability

A term referring to an agreement that is so one-sided or unfair that it shocks the conscience and is therefore unenforceable under the law.

Finance Lease

A type of lease arrangement where the lessee is considered the de facto owner of the leased asset, being responsible for maintenance and other associated costs, and typically involves commercial equipment or vehicles.

Three Parties

A term generally used in contracts or legal situations where three distinct entities are involved.