Which of the Following Statements Is false

question 32

Multiple Choice

Which of the following statements is false?

• 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 indirect 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 direct method.
• C) The FASB prefers the direct method of preparing the operating activities section of the statement of cash flows.
• D) Most companies use the direct method of preparing the operating activities section of the statement of cash flows.

---

Definitions:

Spanish Colony

A territory that was once part of the Spanish Empire, subject to Spanish rule and governance.

Colonial Population

The number of people settling in lands controlled by a foreign power, often referring to the era of European global colonization.

Non-English Origin

Referring to individuals, cultures, or items that originate from countries or regions where English is not the primary language.

Slave Women

Female individuals subjected to slavery, emphasizing their specific experiences, struggles, and contributions within the historical context of slavery.