Which of the Following Methods of Reporting Cash Flows Provided

question 114

Multiple Choice

Which of the following methods of reporting cash flows provided by operating activities does the Financial Accounting Standards Board recommend?

• A)The indirect method
• B)The direct method
• C)An option of either indirect method or the direct method
• D)FASB does not state a preference.

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Definitions:

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold.

Initial Public Offerings

The first sale of a company's shares to the public, marking a private company's transition to a public company.

Underwriter

A professional or company that evaluates and assumes the risk of another party's venture, typically in the financial industry, such as insurance or securities.

Economy

The system of production, distribution, and consumption of goods and services within a particular geographic region.