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.

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Definitions:

Organs

Structures in organisms composed of different tissues performing specific functions essential for life.

Tissues

Groups of similar cells that perform specific functions in an organism.

Dominant Gene

A gene that expresses its phenotypic effect even when heterozygous with a recessive gene, therefore overriding recessive gene characteristics.

Genetic Map

A chart that shows the relative positions of genes and genetic markers on a chromosome based on the frequency of recombination between markers.