Which of the Following Is Not True Regarding the Direct

question 48

Multiple Choice

Which of the following is not true regarding the direct and indirect methods of computing net cash flow from operating activities?

• A)Both methods result in the same dollar amount of cash flow from operating activities.
• B)Both methods involve adjusting entries to the company's books so that the accounting records reflect the figures shown in the statement of cash flows.
• C)Both methods are acceptable to the FASB for reporting purposes.
• D)Both methods convert accrual-based income statement amounts to cash flow results.

Grasp warranty liabilities estimation and recording procedures.

Understand and explain the concept of contingent liabilities and how they are reported in financial statements.

Identify the differences between employer payroll taxes and employee payroll taxes.

Calculate and record estimated warranty expenses and related liabilities.

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Definitions:

Duty To Warn

An ethical and legal responsibility of certain professionals to disclose information to prevent harm to a third party.

Permission To Warn

A principle that may allow a professional, under certain conditions, to breach confidentiality in order to warn a third party of potential danger.

Laws

The system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Complicated Consent Forms

Documents that are difficult to understand due to their complexity, often used in medical and research settings, which can hinder informed decision-making.