The Main Disadvantage of the Direct Method of Reporting Cash

question 97

True/False

The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate.

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Definitions:

Tax Plan

A government's proposal or strategy regarding how to collect and manage taxes, including changes in tax rates, tax credits, and deductions.

Income Taxes

Taxes levied by the government directly on personal, or corporate income.

Budget Surplus

A situation where income or receipts exceed outlays or expenditures over a specific period, commonly used in the context of government budgets.

Tax Cuts

Reductions in the amount of taxes that individuals or corporations must pay to the government, often used as a strategy to stimulate economic growth or redistribute wealth.