Choose the Correct Statement About Preparation of the Statement of Cash

question 74

Multiple Choice

Choose the correct statement about preparation of the Statement of Cash Flows:

• A) only the indirect method is required; the direct method is optional.
• B) a spreadsheet must be used in computerized situations.
• C) no particular preparation method is mandated by GAAP.
• D) the direct method must be used unless available information does not permit it, in which case the indirect method may be used.

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Definitions:

Ethnocentric Bias

The tendency to view one's own culture or ethnicity as superior and to use one’s own cultural standards to judge others.

Biased Sample

A sample that does not accurately represent the population from which it was drawn due to systematic exclusion or over-representation of certain groups.

Ethnocentrism

The act of judging another culture solely by the values and standards of one's own culture.

Phallocentrism

The idea that the penis is central to identity and symbolically empowered.