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:

Gaseous State

One of the four fundamental states of matter, composed of particles that have neither a defined volume nor shape.

Shares Electrons

Refers to the covalent bonding between atoms, where electrons are shared between atoms to achieve a full outer shell and attain chemical stability.

Neutrons

Subatomic particles found within an atom's nucleus, possessing no electric charge and contributing to the atom's mass.

Protons

Protons are subatomic particles found in the nucleus of an atom with a positive electric charge.