The FASB Permits a Company to Use the Direct Method

question 21

True/False

The FASB permits a company to use the direct method or the indirect method for the statement of cash flows.

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Definitions:

Nonsteroidal

Referring to drugs or substances that do not contain steroids, commonly mentioned in the context of anti-inflammatory medications.

Gonadal

Relating to the gonads, the organs that produce gametes (sperm in males and ova in females) for reproduction.

Calcitonin

A hormone produced by the thyroid gland that lowers blood calcium levels by activating osteoblasts.

Thyroid Gland

An endocrine gland, consisting of irregularly spheroid follicles, lying in front and to the sides of the upper part of the trachea, in a horseshoe shape, with two lateral lobes connected by a narrow central portion, the isthmus; occasionally an elongated offshoot, the pyramidal lobe, passes upward from the isthmus in front of the trachea. It is supplied by branches from the external carotid and subclavian arteries, and its nerves are derived from the middle cervical and cervicothoracic ganglia of the sympathetic system. It secretes thyroid hormone and calcitonin.