Which Statement Regarding the Statement of Cash Flows Is TRUE

question 63

Multiple Choice

Which statement regarding the statement of cash flows is TRUE?

• A)The indirect method is preferred by FASB and is used by most companies.
• B)The direct method is preferred by FASB; the indirect method is used by most companies.
• C)The direct method is preferred by FASB and is used by most companies.
• D)The indirect method is preferred by FASB; the direct method is used by most companies.

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Definitions:

Conversion Disorder

A mental condition where psychological distress is expressed through physical symptoms without a medical cause.

Acute Stress

Short-term stress that arises in response to immediate perceived threats or pressures.

Obsessive-Compulsive

Referring to a disorder characterized by unwanted, intrusive thoughts (obsessions) and repetitive behaviors or mental acts (compulsions) that the person feels the urge to perform.

Psychodynamic

An approach in psychology which emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.