GASB Requires the ____________ Method to Report Cash Flows from Operating

question 60

Multiple Choice

GASB requires the ____________ method to report cash flows from operating activities in the Statement of Cash Flows.

• A) Indirect
• B) Direct
• C) Modified direct
• D) modified indirect

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Definitions:

Common Stock

Type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Par Value

A nominal value assigned to shares of stock in a company's charter, not necessarily reflecting market value.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often divided into share capital and retained earnings.