The Direct Method of Preparing the Statement of Cash Flows

question 22

Multiple Choice

The direct method of preparing the statement of cash flows:

• A) reports where cash came from and how it was spent on operating activities.
• B) is used by a vast majority of companies.
• C) is preferred by FASB.
• D) is much easier for companies to compute.

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Definitions:

Terrorist Attacks

Violent acts committed by individuals or groups with the intent to spread fear and achieve political, religious, or ideological goals.

Policy Czars

Special government officials appointed to oversee specific policy areas, often without requiring Senate confirmation.

Executive Office

The administrative or managerial part of the government, led by the executive leader (such as the President or a Prime Minister), which implements and enforces laws, and includes various departments and agencies.

Twenty-Fifth Amendment

An amendment to the U.S. Constitution that provides procedures for replacing the president or vice president in case of death, removal, resignation, or incapacitation.