Corporations Do Not Commonly Use the Direct Method for the Statement

question 151

Multiple Choice

Corporations do not commonly use the direct method for the Statement of Cash Flows because

• A)of the many additional disclosures and schedules that must accompany the statement.
• B)the FASB prefers the indirect method.
• C)the direct method does not follow GAAP.
• D)there are fewer disclosures required under the indirect method.

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Definitions:

Heart Attack

A medical condition characterized by the death of heart muscle due to the sudden blockage of a coronary artery.

Having A TV

The state or condition of owning and likely using a television set for entertainment, information, or education.

Having A Car

The state or condition of owning or possessing a vehicle for personal transportation.

Heart Attack

A medical emergency characterized by the blockage of blood flow to the heart, leading to heart muscle damage or death; also known as myocardial infarction.