The Direct Method of Preparing the Statement of Cash Flows

question 102

Multiple Choice

The direct method of preparing the statement of cash flows:

• A)has an identical operating activities section as the indirect method.
• B)is used by a vast majority of companies.
• C)is preferred by FASB.
• D)is much easier for companies to compute.

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Definitions:

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Monotony

The quality or state of being tediously unchanging or repetitive, often leading to boredom or disinterest.

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