The Direct Method of Reporting Operating Cash Flows

question 127

Multiple Choice

The direct method of reporting operating cash flows:

• A) Is recommended by IFRS.
• B) Is recommended,but not required,by IFRS.
• C) Is used by most companies.
• D) Is not required by IFRS.
• E) All of these answers are correct.

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Definitions:

External Equity

The perception of fairness in compensation when comparing one's salary and benefits to those in similar positions in other organizations.

Internal Equity

The principle of ensuring that employees who perform similar jobs or have comparable skills and responsibilities within an organization are paid equitably.

Competency-Based Pay

A compensation system that rewards employees based on their skills, knowledge, and performance rather than their job title or position.

Skilled-Based Pay

A compensation strategy where employees are paid based on their skills, certifications, or knowledge, rather than their job title or position.