Although the Direct Method Is Easier to Use,the Financial Accounting

question 175

True/False

Although the direct method is easier to use,the Financial Accounting Standards Board (FASB)prefers the indirect method of reporting cash flows from operating activities.

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Definitions:

Good Faith

Conduct characterized by honesty, integrity, and sincerity, especially in fulfilling contracts or negotiations.

Expense Report

A document that itemizes and records all the costs incurred during a business operation or trip.

Personal Entertainment

Forms of amusement or leisure activities that individuals engage in for enjoyment and relaxation.

Company Policy

A set of rules, guidelines, or principles established by an organization that governs its operations and employee behavior.