The FASB Recommends Use of the Direct Method, Rather Than

question 70

True/False

The FASB recommends use of the direct method, rather than the indirect method, of preparing a cash flow statement.

---

Definitions:

Liable

Being legally responsible or obligated, often used in the context of bearing the consequences for actions or incurring debts.

Intended

Planned or meant; having intention or purpose.

Tort Action

A lawsuit or legal claim brought forth as a result of a tort, aimed at recovering damages or seeking remedy for harm caused.

Defense

Reasons that a defendant offers in an action or suit as to why the plaintiff should not obtain what he or she is seeking.