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The Main Disadvantage of the Direct Method of Reporting Cash

question 97

True/False

The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate.


Definitions:

Notes

are written promises to pay a specified amount of money, either on demand or at a set time, to the person named on the document or to their bearer.

Article 3 Negotiability

The section of the Uniform Commercial Code that governs the negotiation and enforcement of negotiable instruments, such as checks or promissory notes.

Payable

Referring to money that is owed by one party to another and should be paid according to terms specified in a contract or agreement.

Definite Time

A specific and set period or moment that is clearly defined or determined.

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