Which Statement Is True as to the FASB's Position on the Presentation

question 80

Multiple Choice

Which statement is true as to the FASB's position on the presentation of the statement of cash flows?

• A)The FASB recommends the use of the indirect method,but most companies use the direct method.
• B)The FASB recommends the use of the direct method,but most companies use the indirect method.
• C)The FASB recommends the use of the direct method,and most companies use the direct method.
• D)The FASB recommends the use of the indirect method,and most companies use the indirect method.

---

Definitions:

July

The seventh month of the year in the Gregorian calendar, known for marking the midpoint of the calendar year.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials used.

April

The fourth month of the year in the Gregorian calendar.

Variable Overhead Efficiency Variance

The difference between actual variable overhead based on the hours worked and the standard variable overhead for the same activity level.