Most Countries

question 6

Multiple Choice

Most countries

• A) require the direct method of cash flow statements
• B) require the indirect method of cash flow statements
• C) require the working capital approach
• D) don't require any specific method in cash flow statements

---

Definitions:

Liability

A financial obligation or amount owed by a business or individual, arising from past transactions or events.

Asset

An item of value owned by an individual or corporation, expected to provide future benefits or value.

Stockholders' Equity

Stockholders' Equity represents the ownership interest of shareholders in the net assets of a company, calculated as the difference between total assets and total liabilities.

Revenues

Revenues represent the income earned by a business from its normal operations, such as sales of goods or services, before any expenses are deducted.