Which of the Following Correctly Describes a Difference Between the Direct

question 166

Multiple Choice

Which of the following correctly describes a difference between the direct method and the indirect method of computing operating cash flow?

• A) The direct method is used when accounting records are kept on a cash basis; the indirect method is used when accounting records are maintained on an accrual basis.
• B) The direct method may be used only when a company maintains special journals for cash receipts and cash disbursements; the indirect method is used in all other situations.
• C) Both the direct and the indirect methods result in the same net cash flow from operating activities, but the format of this section of the statement of cash flows is different under the alternative methods.
• D) The direct method is used when all accounting records and bank statements are available; the indirect method is used when some accounting records or documents are missing or have been destroyed.

Comprehend the role of graphing in analyzing and providing immediate feedback on behavior.

Identify the steps and considerations in implementing a changing criterion design.

Grasp the necessity of multiple data points and clear axes in effective graph presentation.

Acknowledge the advantages and disadvantages of using the alternating treatments design.

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Definitions:

Law of Equity

A branch of law that supplements common law by providing remedies and justice that are not available in traditional legal systems, focusing on fairness.

Common Law Courts

Courts that base their decisions on precedents or judicial rulings rather than written statutes.

Stare Decisis

A legal principle that obligates courts to follow historical cases when making a ruling on a similar current or future case.

Common Law

A legal system based on custom, court rulings, and precedent rather than statutory laws.