The Major Difference Between the Indirect and the Direct Method

question 23

Multiple Choice

The major difference between the indirect and the direct method of a statement of cash flows appears in which the following activities section(s) ?

• A) The investing activities and financing activities sections.
• B) The investing activities section only.
• C) The operating activities and financing activities sections.
• D) The operating activities section only.

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Definitions:

Reward And Compensation Strategy

A deliberate approach a company takes to outline how employees are compensated and rewarded for their performance, aiming to align employee interests with organizational goals.

Optimal Compensation System

A well-designed compensation framework that aims to align the interests of the employees with those of the organization, while motivating staff and controlling costs.

Organization's Value

The core principles, beliefs, and philosophies that guide a company's operations and define its brand identity.

Costs

The amount of money required for the production, acquisition, or completion of goods or services.