Which Method Is Used by the Majority of U

question 76

Multiple Choice

Which method is used by the majority of U.S.companies to report cash flows from operating activities?

• A) Accrual method
• B) Direct method
• C) Indirect method
• D) Computational method

---

Definitions:

Information Age

A period in human history characterized by the shift from traditional industry to an economy based on information technology.

Separate Legal Entity

A status that allows a company to operate as its own legal entity, distinct from its shareholders, with rights to sue, be sued, own assets, and incur liabilities.

Taxable Entity

A taxable entity refers to any individual, business, or organization that is subject to tax by governments.

Business Organization

The structure by which a business is organized and operated, which can range from sole proprietorships to corporations.