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.

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Definitions:

No Free Lunch

An expression indicating that everything has a cost, and nothing is truly given away without an expectation of something in return.

Less Government

A philosophy or approach that advocates for minimal governmental intervention in economic affairs.

Social Regulation

Rules imposed by government aimed at restricting behaviors that directly relate to the welfare of individuals in society, such as health, safety, and environmental regulations.

Industrial Regulation

Government rules or laws designed to control business practices, market conditions, and protect consumers within specific industries.