Two methods are available to prepare the operating activities section of a statement of cash flows. Which of the following statements regarding these two methods is false?

a. If a company uses the indirect method, it must separately disclose the cash payments made for interest and income taxes.
b. If a company uses the direct method, it must present a separate schedule which reconciles net income to net cash from operating activities.
c. Advocates of the direct method believe that the indirect method reveals too much by telling readers gross amounts of cash receipts and cash payments from operations.
d. The FASB prefers the direct method, while most companies use the indirect method in practice.


c

Business

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A) Names of references B) Marital status C) Military experience D) National origin E) Names of previous supervisors

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One reason insurable losses must be definite is to allow measurability of the losses

Indicate whether the statement is true or false

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A promise to pay an attorney a fee owed by a third person can be enforced without a writing

Indicate whether the statement is true or false

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Using a freight forwarder usually

A. is not economical for a small firm. B. increases transit time and shipping costs. C. increases transit time and sometimes lowers shipping costs. D. lowers shipping costs for a large firm. E. reduces transit time.

Business