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.

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Definitions:

Constitution

The fundamental law or set of principles by which a country or organization is governed, outlining the structure of government and individual rights.

Territorially Fair

A principle aiming for fairness and equity in the enactment and enforcement of laws within different geographical territories.

Convenient Forum

A legal principle allowing courts to dismiss or transfer cases to another jurisdiction that is more suitable or appropriate for resolving the case.

Original Jurisdiction

The authority of a court to hear a case for the first time, as opposed to appellate jurisdiction, which is the authority to review decisions made by lower courts.