On the Statement of Cash Flows, the Direct Method Reports

question 22

True/False

On the statement of cash flows, the direct method reports literal cash flows related to income statement classifications.

---

Definitions:

Securities Act

U.S. legislation enacted in 1933 that regulates the sale of securities to the public, requiring disclosure of significant information.

Publicly Held

Describes a company whose shares are traded openly on stock exchanges and can be purchased by the general public.

Securities Act

A U.S. law enacted in 1933 that requires the disclosure of significant financial information by companies offering securities (stocks, bonds) for public sale.

Exempt

To be free or released from an obligation, rule, or requirement typically imposed on others.