The Direct Method of Reporting Operating Cash Flows

question 225

Multiple Choice

The direct method of reporting operating cash flows:

• A)Separately lists cash receipts and payments.
• B)Must be used by all companies.
• C)Is used by most companies.
• D)Is considered supplementary disclosure.
• E)Is not recommended by the FASB,but is commonly used.

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Definitions:

Random Sample

A selection method where every member of a population has an equal chance of being included in the sample, decreasing bias in data collection.

Scientific

Relating to or based on the systematic and empirical study of the natural world through observation and experiment.

Sexual Behaviors

Actions or practices related to the pursuit of sexual pleasure or reproduction.

Cause-and-Effect Relationships

The relationship between events where one or more are the cause of the other(s), establishing a connection between a condition or event and its outcome or consequences.