Which of the Following Statements Is false

question 32

Multiple Choice

Which of the following statements is false?

• A) The method of preparing the operating activities section of a statement of cash flows which adjusts net income to remove the effects of deferrals and accruals for revenues and expenses is the indirect method.
• B) The method of preparing the operating activities section of a statement of cash flows which reports major classes of gross cash receipts and cash payments for revenues and expenses is the direct method.
• C) The FASB prefers the direct method of preparing the operating activities section of the statement of cash flows.
• D) Most companies use the direct method of preparing the operating activities section of the statement of cash flows.

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Definitions:

Driven

Being strongly motivated or compelled to achieve something.

Unconscious Efforts

Actions or processes that occur without conscious awareness or intention, driven by the unconscious mind.

Defense Mechanisms

Psychological strategies used by individuals to cope with reality and to maintain self-image, often unconsciously.

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.