There Are Two Alternatives to Reporting Cash Flows from Operating

question 83

True/False

There are two alternatives to reporting cash flows from operating activities in the statement of cash flows:
(1) the direct method and
(2) the indirect method.

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Definitions:

Fixed Input

A production factor that remains unchanged regardless of the level of output in the short run.

Marginal Product

The additional output generated by employing one more unit of a particular input, keeping other inputs constant.

Units of Labor

Measurements used to quantify the work input by labor forces, often referring to hours worked or number of workers.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.