Which Method of Preparing the Statement of Cash Flows Is

question 133

Multiple Choice

Which method of preparing the statement of cash flows is required by U.S.GAAP?

• A)direct
• B)indirect
• C)funds flow
• D)either direct or indirect may be used if appropriate note disclosure is included
• E)either direct or funds flow may be used if appropriate note disclosure is included

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Definitions:

Firms

Business organizations that produce goods or services, often to make a profit.

Tariffs

Taxes imposed on imported goods, often to protect domestic industries or to raise government revenue.

Subsidizing Exports

Financial support provided by governments to domestic companies to lower their production costs and make their exports more competitive on the global market.

Free International Trade

The exchange of goods and services between countries without restrictive quotas, tariffs, or other barriers.