The Direct Method of Preparing the Operating Activities Section of the Statement

question 17

True/False

The direct method of preparing the operating activities section of the statement of cash flows reports major classes of cash receipts and cash payments related to the day-to-day operations of the business.

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Definitions:

Cultural Standards

Norms and values that are widely held and practiced by a culture, guiding behavior and social expectations.

Structural Means

The arrangements or mechanisms within a society that facilitate the accomplishment of societal norms, goals, or purposes.

Structural Inequality

Describes systemic disparities in access to resources, opportunities, and rights that are embedded within the social, political, and economic structures of a society.

Functional

Pertains to the way in which something is used or operates, often focusing on the role that an element or process plays within a larger system.