Which of the Following Statements Is Incorrect Regarding the Statement

question 3

Multiple Choice

Which of the following statements is incorrect regarding the statement of cash flows?

• A)The direct and indirect methods always produce the same amount of cash flows from operating activities.
• B)The direct method presentation of operating cash flows is more straightforward than that of the indirect method.
• C)The indirect method is more difficult to implement in practice.
• D)When the direct method is presented,preparation and disclosure of the indirect method of presenting cash flows from operating activities is also required.

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Definitions:

Algorithm

A set of rules or a step-by-step process designed to perform a specific task or solve a particular problem.

Heuristic

A simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than an algorithm.

Tools

Devices or implements used to carry out a function or perform a task, often making jobs easier or possible.

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision making by reducing the amount of information processed.