Almost All U

question 159

Multiple Choice

Almost all U.S.companies have used the indirect method of preparing the statement of cash flows:

• A)because most users of the financial statements do not understand the direct method.
• B)in spite of the FASB's stated preference for the direct method.
• C)because it usually requires less space in the annual report.
• D)so that stockholders cannot determine how much cash was spent on executives' salaries.

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Definitions:

Constants

In mathematics and science, fixed values that remain the same throughout an equation or experiment.

Indifference Curve

A graph representing combinations of goods between which a consumer is indifferent, showing preference levels and trade-offs.

Midterm Grade

The grade assigned to a student's performance in a course midway through the term, often used as an indicator of the student's understanding of the material so far.

Horizontal Axis

A line that runs left to right across the chart or graph, often used to represent the independent variable in a data set.