The FASB Requires a Reconciliation of Net Income to Net

question 182

True/False

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the direct method is used (which can be reported in the notes).

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Definitions:

Mutually Exclusive

This term refers to situations where two conditions cannot both be true at the same time. For example, a light switch cannot be both on and off simultaneously.

Consistent Principle

A rule or standard that is applied uniformly and reliably over time or across situations, without contradictions.

Jointly Exhaustive

A set of options or propositions is considered jointly exhaustive when it covers all possible scenarios or outcomes, leaving no possibility unaddressed.

Mutually Exclusive

Describing two or more events or conditions that cannot occur or be true at the same time.