The Direct Method for the Preparation of the Operating Activities

question 155

Multiple Choice

The direct method for the preparation of the operating activities section of the statement of cash flows:

• A)Separately lists each major item of operating cash receipts and cash payments.
• B)Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.
• C)Reports a different amount of cash flows from operations than if the indirect method is used.
• D)Is required if the company is a merchandiser.
• E)Is required by the FASB.

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Definitions:

Deconstructionist Perspective

An analytical approach that seeks to understand texts, theories, or institutions by revealing inherent contradictions and questioning established interpretations.

Cultural Characteristic

Features that distinguish one culture from another, including language, values, beliefs, norms, and practices.

Need for Achievement

A psychological trait that reflects an individual's desire for success and the attainment of excellence through personal effort.

Honor Cultures

Social systems in which individuals' status is strongly influenced by their ability to respond to insults, challenges, or threats with physical or verbal retaliation.