Which of the Following Statements Is False

question 192

Multiple Choice

Which of the following statements is false?

• 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 indirect 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 direct method.
• C)The FASB prefers the direct method of preparing the Operating Activities section of the statement of cash flows.
• D)Most companies use the direct method of preparing the Operating Activities section of the statement of cash flows.

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Definitions:

Competitive Force

Refers to the pressure exerted by competitors within the same industry, impacting an organization's strategies and performance.