Which of the Following Statements Is false

question 32

Multiple Choice

Which of the following statements is false?

• A) The method of preparing the operating activities section of a statement of cash flows which adjusts net income to remove the effects of deferrals and accruals for revenues and expenses is the indirect method.
• B) The method of preparing the operating activities section of a statement of cash flows which reports major classes of gross cash receipts and cash payments for revenues and expenses is the direct method.
• C) The FASB prefers the direct method of preparing the operating activities section of the statement of cash flows.
• D) Most companies use the direct method of preparing the operating activities section of the statement of cash flows.

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Definitions:

Organized Labor

Refers to labor unions and similar organizations that represent the collective interests of workers in negotiations with employers over wages, hours, benefits, and working conditions.

Service-Oriented Economy

An economic system where the primary focus is on the provision of services rather than the production of goods.

Pension Plans

Financial programs that provide income to individuals upon retirement, funded by employers or the government.

Invasion of the Body Snatchers

A novel and film franchise that explores themes of alien invasion and the replacement of humans with emotionless alien duplicates.