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:

Global Marketing Environment

A complex framework consisting of external factors in international markets that affect a company's marketing strategy and performance.

Currency Fluctuation

Refers to the changes in the value of one currency relative to another, impacting international trade and investments.

Income Distribution

The way in which total income is shared among the population or different groups within society.

Environmental Scanning

The process of systematically gathering information about the external environment, including trends and changes, to aid in strategic planning.