16-60 Which of the Following Partially Explains Why Cash Management

question 51

Multiple Choice

16-60 Which of the following partially explains why cash management services have not attracted customers in Europe to the degree that they have in the US?

• A)Prevalence of nationwide branching and banking in Europe.
• B)Prevalence of interregional banking restrictions in Europe.
• C)Prohibitive charges imposed for the use of domestic telephone lines in Europe.
• D)Prohibitive charges imposed on such services in Europe.
• E)None of the above.

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Definitions:

Direct Method

A cash flow statement preparation method that shows the specific sources of operating cash receipts and payments.

Indirect Method

A financial reporting approach used in cash flow statements where net income is adjusted for non-cash transactions, depreciation, and changes in working capital to determine cash flow from operating activities.

Direct Method

A cash flow statement preparation approach that itemizes actual cash inflows and outflows from operating activities, as opposed to estimating them through indirect adjustments.

Expenses and Losses

Costs incurred in the operation of a business (expenses) and decreases in value not directly related to operations (losses).