Which of the Following Statements Regarding Use of the Direct

question 79

Multiple Choice

Which of the following statements regarding use of the direct and indirect methods of determining cash flows from operating activities is incorrect?

• A)The indirect method starts with net income.
• B)The direct method calculates cash collected from customers.
• C)The majority of U.S.companies use the indirect method.
• D)The FASB recommends use of the indirect methoD.The FASB recommends use of the direct method.

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Definitions:

Unified Objects

A concept referring to the integration of various elements into a coherent, singular entity in cognitive processing or computer science.

Serial Processing

A cognitive process in which the brain processes information sequentially, one item at a time.

Stroop Interference

The delay in reaction time when the color of words on a test and the words themselves do not match.

Naming Colors

The cognitive ability to identify and articulate the names of different colors, often used in psychological testing to measure cognitive processing and executive function.