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Kwame, Rosalinda, and Sven Work at Security First Trust and National

question 61

Multiple Choice

Kwame, Rosalinda, and Sven work at Security First Trust and National Reserve, a medium-sized bank with 240 branches in eight states. Kwame works as a teller. Rosalinda works as one of five regional supervisors, each of whom is expected to supervise a team of tellers. Kwame recently received instructions from his supervisor that all tellers will be evaluated on the number of people they assist at their window per day. Serving more customers means higher performance effectiveness. However, Kwame is also expected to follow the bank's number-one goal of customer satisfaction. Rosalinda is facing her own challenges. Two of the regional supervisors suddenly left the bank for other opportunities, resulting in a significant increase in work responsibility and time pressure for Rosalinda and the remaining two supervisors. Just two days before the two regional supervisors quit, the bank hired Sven as a supervisor trainee. With the bank suddenly short-handed, Sven was asked to take up all the responsibilities of a regional supervisor. He has been given very few instructions or guidelines about how things are supposed to be done. Instead, the bank expects him to learn on the job. Rosalinda's stress is related to a

Definitions:

Indirect Method

A cash flow statement preparation approach that adjusts net income for changes in non-cash accounts to compute cash flow from operating activities.

Direct Method

The direct method is a way of preparing cash flow statements where actual cash flows from operating activities are reported instead of adjustments from net income.

Direct Approach

A method used in accounting that focuses on the immediate recognition of revenues and expenses when they are incurred, without adjusting for accruals.

Indirect Approach

A method used in the preparation of the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.