If the Direct Method Is Used to Report Cash Flows

question 110

True/False

If the direct method is used to report cash flows from operating activities in the body of the statement of cash flows, a reconciliation of net income to net cash flows from operating activities also is required.

---

Definitions:

Nematocysts

Specialized cells in the tentacles of cnidarians (such as jellyfish) that discharge a barbed or venomous coiled thread in response to touch.

Cnidarians

A phylum of aquatic invertebrate animals that includes jellyfish, corals, and sea anemones, characterized by their cnidocytes.

Filter Feeders

Organisms that feed by straining suspended matter and food particles from water, usually by passing the water over a specialized filtering structure.

Herbivorous

An organism that feeds exclusively on plant materials, including leaves, stems, fruits, and roots.