Under the Direct Method,each Line of the Income Statement Is

question 114

True/False

Under the direct method,each line of the income statement is converted to cash paid or received.

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Definitions:

U.S.GAAP

Generally Accepted Accounting Principles in the United States, a collection of financial reporting standards utilized in the U.S. for accounting purposes.

IFRS

The International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB), aimed at making global financial reporting more transparent and comparable.

OCI

Other Comprehensive Income, which includes revenues, expenses, gains, and losses that are not included in net income and directly affect shareholders' equity.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.