Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A)The method of preparing the Operating Activities section of a statement of cash flows that adjusts net income to remove the effects of deferrals and accruals for revenues and expenses is the direct method.
• B)The method of preparing the Operating Activities section of a statement of cash flows that reports major classes of gross cash receipts and cash payments for revenues and expenses is the indirect method.
• C)The FASB prefers the indirect method of preparing the Operating Activities section of the statement of cash flows.
• D)Most companies use the indirect method of preparing the Operating Activities section of the statement of cash flows.

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Definitions:

Sensing

The way listeners pay attention to the signals sent from the speaker.

Responding

The way active listeners provide feedback to the speaker.

Emotions

Intense feelings directed at a specific object or person.

Constructive Criticism

Feedback provided in a positive and supportive manner intended to help improve an individual's performance or behavior.