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.

Apply exchange rates to compute the equivalent value in a different currency.

Analyze the impact of exchange rate fluctuations on currency value.

Perform basic mathematical operations to solve currency conversion problems.

Interpret exchange rate information from given data.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

Equilibrium

The condition where supply and demand in the market are equal, leading to stable prices.

Consumer Surplus

The disparity in amounts between what is potentially spent by consumers and what is actually spent on a good or service.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.