Which Method Will Yield Higher Cash Flows from Operating Activities

question 160

Multiple Choice

Which method will yield higher cash flows from operating activities?

• A)The indirect method.
• B)The direct method.
• C)Both direct and indirect methods will yield the same amount.
• D)Depends upon the situation.

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Definitions:

Willpower

refers to the ability to control impulses and delay short-term gratification for long-term objectives.

Commitment

The state or quality of being dedicated to a cause, activity, or goal.

Optimistic Biases

The tendency to believe that we are less likely to experience negative events and more likely to experience positive events compared to others.

Pessimistic Biases

A cognitive tendency to anticipate negative outcomes or to view situations more negatively than they may actually be.