Which of the Following Statements Is True

question 176

Multiple Choice

Which of the following statements is true?

• A) The method of preparing the operating activities section of a statement of cash flows which adjusts net income to remove the effects of deferrals and accruals for revenues and expenses is the direct method.
• B) The method of preparing the operating activities section of a statement of cash flows which reports major classes of gross cash receipts and cash payments for revenues and expenses is the indirect method.
• C) The FASB prefers the indirect method of preparing the operating activities section of the statement of cash flows.
• D) Most companies use the indirect method of preparing the operating activities section of the statement of cash flows.

---

Definitions:

White Women

Refers specifically to women who are categorized or identify as white, highlighting their experiences within the scope of gender and race dynamics.

Marital Inequality

Disparities or imbalances of power, responsibilities, or resources between spouses within a marriage.

Distancing

The act of creating emotional or physical space from others; it can be a coping mechanism or a part of social dynamics.

Positive Comparisons

The act of comparing oneself or others in a way that highlights strengths and achievements, often to boost self-esteem or motivation.