A Criticism of the Indirect Approach to Presenting Cash Flows

question 9

Multiple Choice

A criticism of the indirect approach to presenting cash flows from operating activities is:

• A) adding back expenses such as depreciation may suggest that these items are sources of cash
• B) it is unnecessarily complicated
• C) it requires cash inflows to be netted against cash outflows
• D) A and B

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Definitions:

Cultures

The shared beliefs, practices, norms, and values of a group of people, or the cultivation of bacteria, tissue cells, etc., in a medium for scientific study.

Educational Backgrounds

The formal schooling and training an individual has received, including degrees, diplomas, and certificates obtained from educational institutions.

Respiration

The biological process involving the inhalation of oxygen and exhalation of carbon dioxide, crucial for cell metabolism and energy production.

Patient Breathes

The process through which a patient takes in oxygen and expels carbon dioxide through the respiratory system.