Most Public Companies Use the Indirect Method to Prepare Their

question 109

True/False

Most public companies use the indirect method to prepare their statement of cash flows because the FASB prefers this method.

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Definitions:

Externality

An externality is a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices.

Pollution Reduction

The process or policy of decreasing the amount of pollutants released into the environment, often to protect ecological health and human safety.

Permits

Official documents or licenses that authorize individuals or companies to undertake certain activities, often subject to regulations.

Pollution

The introduction of contaminants into the natural environment that cause adverse change.