The Direct Method of Preparing the Statement of Cash Flows

question 90

Multiple Choice

The direct method of preparing the statement of cash flows:

• A)is preferred by FASB.
• B)reports where cash came from and how it was spent on operating activities.
• C)is much easier for companies to compute.
• D)is both A and B.

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Definitions:

Fixed Tariff

A preset tax or duty to be paid on particular imports or exports, which remains unchanged over a period regardless of economic conditions.

Ad Valorem Tariff

A type of tax calculated as a percentage of the value of the goods being imported or exported.