The Direct Method of Preparing the Statement of Cash Flows

question 23

Multiple Choice

The direct method of preparing the statement of cash flows is preferred by the Financial Accounting Standards Board primarily because of the way it reports:

• A)operating activities.
• B)investing activities.
• C)financing activities.
• D)noncash activities.

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Definitions:

Duty of Competence

The obligation for professionals, especially in legal and medical fields, to maintain a reasonable level of skill and knowledge while serving their clients or patients.

Nonlawyer Employees

Staff members working within a law firm or legal environment who do not possess a law degree or legal license but support legal services.

Ethical Conduct

The adherence to accepted standards of behavior, informed by moral principles, often governing the professional conduct of individuals.

Missed Deadlines

The failure to complete or submit tasks, documents, or payments within the stipulated time frame.