The Direct Method of Reporting Operating Cash Flows

question 12

Multiple Choice

The direct method of reporting operating cash flows:

• A)Is recommended but not required by the FASB.
• 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:

Frustration

A feeling of dissatisfaction, often accompanied by anxiety or depression, resulting from unmet needs or unresolved problems.

Happiest

Refers to the state of experiencing high levels of joy, satisfaction, and well-being.

Marry

The legal or formally recognized union of two people as partners in a personal relationship.

Divorce

A court or duly authorized body's act of formally dissolving a marital relationship.