When Preparing the Statement of Cash Flows,the Amount of Net

question 168

True/False

When preparing the statement of cash flows,the amount of net cash provided by operating activities differs between the direct and indirect methods.

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Definitions:

Dogs

In a business context, refers to a portfolio category in the BCG matrix representing businesses with low market share in slow-growing markets, usually considered for divestiture.

Preferred Strategy

A favored or chosen approach to achieving objectives that is selected from among various options based on its anticipated effectiveness.

BCG Matrix

A strategic business tool developed by the Boston Consulting Group that classifies business units or products into four categories (Question Marks, Stars, Cash Cows, Dogs) based on market growth and market share to guide investment decisions.

Low Market Shares

The situation of a company or product having a small percentage of total sales in its respective market, typically indicating limited control or influence.