The Direct Method of Reporting

question 140

Multiple Choice

The direct method of reporting

• A)is preferred by U.S.GAAP.
• B)shows a reconciliation between net income and cash flow from operations either at the bottom of the statement of cash flows or in a separate note.
• C)reports the amounts of cash received from customers less cash disbursed to various suppliers, employees, lenders for interest payments, and taxing authorities.
• D)includes all of the above.
• E)includes none of the above.

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Definitions:

Social Gospel Movement

A religious movement that emerged in the 19th century, emphasizing the application of Christian ethics to social problems such as poverty and inequality.

Class Equality

Class equality refers to a societal state in which all social classes have equal rights, opportunities, and access to resources, minimizing or eliminating disparities in wealth and power.

Protestant Ethic

A concept in sociology introduced by Max Weber, suggesting that Protestantism, especially Calvinism, facilitated the rise of capitalism by promoting qualities like hard work, frugality, and efficiency.

Worship God

The act of showing reverence and adoration for a deity, especially as part of a religious ritual.