Tracy Used the Indirect Method of Determining Cash Flow from Operations

question 11

Multiple Choice

Tracy used the indirect method of determining cash flow from operations (CFO) , had they used the direct method:

• A) CFO would have been higher as gains are not deducted in arriving at CFO
• B) CFO would have been lower as losses and depreciation are not added back in arriving at CFO
• C) CFO would have been the same
• D) it is not possible to determine what CFO would have been without more information

---

Definitions:

Robert House

An influential figure in the field of organizational psychology, known for his path-goal theory of leadership that focuses on how leaders motivate subordinates to achieve their goals.

GLOBE Project

A research program focusing on culture and its impact on leadership and organizational effectiveness, involving over 170 researchers worldwide.

Quotas

Pre-determined targets or minimum requirements that must be met within a specified time frame, often used in sales, production, or employment contexts.

Trade Control

regulations and policies that governments implement to control the flow of goods and services across their borders.