GAAP allows the use of either the direct or indirect method but prefers the direct method.  Companies who use the indirect method must also include a separate schedule reconciling net income to net cash flow provided by operating activities.

Answer the following statement true (T) or false (F)


False

Business

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It has been observed that most new products have shorter product life cycles. What is the reason for this?

A) Most new products do not use technology. B) Most new products are not backed by a marketable idea. C) New products do not get adequate management support. D) Social and governmental constraints lead to this failure. E) Rivals quickly copy products that are successful.

Business

Interest paid on bonds payable would be included in the financing activities category on the statement of cash flows

Indicate whether the statement is true or false

Business

The most beneficial projects are the ones with the highest net present value

Indicate whether the statement is true or false

Business

One of the characteristics of a fair value measurement is that the measurement does embody a minimum probability for recognition

Indicate whether the statement is true or false

Business