Which Method Will Yield the Higher Cash Flows from Financing

question 125

Multiple Choice

Which method will yield the higher cash flows from financing 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:

Dualistic

Thinking or philosophy characterized by a division or contrast between two concepts, such as good and evil, mind and body.

Relativistic Thinking

The cognitive ability to understand that knowledge and viewpoints can be relative and dependent on the context.

Autonomous Judgment

The ability to make decisions independently, based on one’s own reasoning and values.

Dualistic Thinking

A cognitive tendency to see situations and issues in black and white, categorizing concepts as either/or without acknowledging complexities.