Which Statement Is True as to the IASB's Position on the Presentation

question 25

Multiple Choice

Which statement is true as to the IASB's position on the presentation of the statement of cash flows?

• A) The IASB recommends the use of the indirect method, but most companies use the direct method.
• B) The IASB recommends the use of the direct method, but most companies use the indirect method.
• C) The IASB recommends the use of the direct method, and most companies use the direct method.
• D) The IASB recommends the use of the indirect method, and most companies use the indirect method.

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Definitions:

Reaffirmation Agreement

An agreement in which the debtor agrees to pay a debt even though it could have been discharged in bankruptcy.

Discharged Debt

Debt that has been formally released or forgiven, relieving the debtor of any further responsibility to repay it.

Trustee

An individual or company responsible for managing and overseeing assets or property on behalf of another party.

Chapter 7 Bankruptcy

A provision of the bankruptcy code that allows individuals and businesses to discharge or eliminate most of their debts through the liquidation of assets.