In Developing the Cash Flows from Operating Activities, Most Companies

question 76

Multiple Choice

In developing the cash flows from operating activities, most companies in the United States

• A)use the direct method.
• B)use the indirect method.
• C)present both the indirect and direct methods in their financial reports.
• D)prepare the operating activities section on the accrual basis.

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Definitions:

Needs Assessment

A needs assessment is a systematic process for determining and addressing gaps between current conditions and desired conditions or wants, often used for improving a system or service.

Business Processes

The collection of linked tasks and activities that transform inputs into outputs, thereby achieving a specific organizational goal.

Supply Chain Performance

The measurement of how effectively and efficiently a supply chain operates, including metrics such as delivery times, costs, and quality.