When a Company Uses the Direct Method to Present the Statement

question 8

True/False

When a company uses the direct method to present the statement of cash flows, the payment of cash dividends reduces the amount of net cash provided by operating activities.

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Definitions:

IFRS

International Financial Reporting Standards, a set of global accounting guidelines providing a common language for business affairs so that company accounts are understandable and comparable across international boundaries.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating securities industry, stock and options exchanges.

U.S.GAAP

United States Generally Accepted Accounting Principles, a set of accounting standards and principles used to prepare financial statements in the U.S.

Economic Events

Transactions and occurrences that affect the financial position and performance of a business.