Which of the Following Statements Is True Regarding GAAP and Reporting

question 46

Multiple Choice

Which of the following statements is true regarding GAAP and reporting operating activities on the statement of cash flows?

• A) The direct method is required of large companies.
• B) The GAAP prefers the indirect method.
• C) The GAAP prefers the direct method.
• D) The GAAP did not express a preference for either the direct or indirect method.

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Definitions:

American Girl

A brand of dolls and books that aim to teach historical and contemporary stories through characters, focusing on themes of courage, compassion, and respect.

Puberty

The developmental stage during which a child's body transitions into an adult body capable of sexual reproduction.

Age

The length of time that a person or thing has existed, typically measured in years from the date of birth for people.

Social Construction

A concept or practice that may appear natural and obvious to those who accept it, but that in reality is an invention of a particular culture or society.