The Direct Method of Preparing the Statement of Cash Flows

question 146

True/False

The direct method of preparing the statement of cash flows is usually viewed as user friendly since it requires less accounting knowledge to understand it.

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Definitions:

Social Value

The importance or benefits a project, policy, or action brings to the community or society at large, beyond just economic gains.

Private Cost

The cost incurred by an individual or company in producing goods or services, excluding externalities.

Private Value

The value of a good or service to an individual buyer or seller which is independent of the market price or the value others might derive from it.

Externalities

Results of business activities on external entities not considered in the product or service's price.