A Major Disadvantage of the Indirect Method of Reporting Cash

question 176

True/False

A major disadvantage of the indirect method of reporting cash flows from operating activities is that the difference between the net amount of cash flows from operating activities and net income is emphasized.

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Definitions:

Positive Punishment

A methodology in behaviorism where an undesirable outcome follows an unwanted behavior, with the aim of decreasing the frequency of that behavior.

Remove a Stimulus

Refers to the process of eliminating a particular stimulus, which can affect behavior by decreasing the likelihood of a conditioned response.

Cognitive Theorist

A psychologist who studies how we encode, process, store, and retrieve information, and how this process affects our behavior.

Edward Tolman

An American psychologist known for his contributions to cognitive psychology, particularly in the study of learning and motivation.