The Direct Method for Preparing and Reporting the Statement of Cash

question 27

True/False

The direct method for preparing and reporting the statement of cash flows reports net income and then adjusts it for items necessary to calculate net cash provided or used by operating activities.

---

Definitions:

Humanistic

An approach in psychology that emphasizes individual potential for growth and the importance of human values and goals.

Existential Theories

Psychological theories that focus on human existence, freedom, and choice as the foundations of human behavior.

Phenomenological

Pertaining to phenomenology, a branch of philosophy focusing on the structures of experience and consciousness from a first-person perspective.