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:

Republican Party

A major political party in the United States known for its conservative positions on economic and social issues.

Institutionalized Power

Power that is established, maintained, and recognized by societal norms and institutions, often embedded in laws, traditions, and organizational structures.

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Authority that is recognized and accepted by others within an organizational or societal structure, often based on a person's role or position.

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The distribution of views, beliefs, or sentiments held by the general population regarding issues, policies, or actions.