A Major Disadvantage of the Indirect Method of Reporting Cash

question 117

True/False

A major disadvantage of the indirect method of reporting cash flows from operating activities is that the difference between the net amount of cash flows from operating activities and net income is not emphasized.

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Definitions:

FWPCA

refers to the Federal Water Pollution Control Act, which is the primary federal law in the United States governing water pollution.

Rivers And Harbors Appropriation Act

A series of United States federal laws, first enacted in the late 19th century, regulating the development and management of rivers, harbors, and related waterways.

Navigable Waters

Bodies of water that are legally recognized as being suitable for public transportation and commerce.

Clean Air Act

A landmark piece of U.S. federal legislation passed to control air pollution on a national level, regulating emissions from both stationary and mobile sources.