Answer the following statements true (T) or false (F)
1. Although the direct method is easier to use, the Financial Accounting Standards Board (FASB) prefers the indirect method of reporting cash flows from operating activities.
2. When preparing the statement of cash flows, the amount of net cash provided by operating activities differs between the direct and indirect methods.
3. The net cash provided by operating activities is calculated in the same way, whether the company uses the direct or the indirect method of preparing the statement of cash flows.
4. The cash flow from investing activities section appears exactly the same, whether the company uses the direct or the indirect method to prepare the statement of cash flows.
1. FALSE
2. FALSE
3. FALSE
4. TRUE
You might also like to view...
______ culture prefers reserve, formality, and silence and contrasts with Americans, who prefer informality, talkativeness, and assertion?
Fill in the blank(s) with the appropriate word(s).
Which of the following is a test of merchantability for all sales contracts?
A. The goods conform to the general description of the goods available in the market. B. The goods need not necessarily be packaged or labeled adequately. C. The goods conform to any promises or statements of fact made on the container or label. D. The goods are of different kind, quality, and quantity within each unit.
Nielsen uses audimeters attached to television sets to continually record what channel the set is tuned to. This is an example of ________
A) mechanical observation B) personal observation C) content analysis D) trace analysis
What are the purposes of a registration statement and what information must it contain?
What will be an ideal response?