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:

Open Posture

A position that conveys a feeling of receptiveness and friendliness; facing another person with arms comfortably at the sides or in the lap.

Body Language

Non-verbal communication, including facial expressions, eye contact, posture, touch, and attention to personal space.

Facial Expressions

The movements of the facial muscles that convey emotions and communication.

Eye Contact

The act of looking directly into another person’s eyes, often used as a form of nonverbal communication to convey attentiveness or confidence.