Which Statement Is True as to the FASB's Position on the Presentation

question 80

Multiple Choice

Which statement is true as to the FASB's position on the presentation of the statement of cash flows?

• A)The FASB recommends the use of the indirect method,but most companies use the direct method.
• B)The FASB recommends the use of the direct method,but most companies use the indirect method.
• C)The FASB recommends the use of the direct method,and most companies use the direct method.
• D)The FASB recommends the use of the indirect method,and most companies use the indirect method.

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Definitions:

Eurobond

A bond issued in a currency other than the currency of the country or market in which it is issued.

International Bond

A debt investment that is issued in a country by a non-domestic entity, potentially denominated in a foreign currency, and sold to investors from around the world.

Purchasing Power Parity

Purchasing power parity is an economic theory that compares different countries' currencies through a "basket of goods" approach, assuming that exchange rates should adjust so that identical goods cost the same in different countries.

Exchange Rate

The price of one country's currency expressed in terms of another country's currency, facilitating international trade and finance.