With reference to the reporting of net cash flow from operating activities, which method do most companies use and why?
A. Indirect method because it is less expensive to prepare
B. Direct method because it is based on the accrual basis of accounting
C. Direct method because it requires a supplemental indirect method section
D. Indirect method because it provides better information for decision making
Ans: A. Indirect method because it is less expensive to prepare
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Regarding accounting entries for debt securities, which of the following is true?
A) The receipt of interest revenue is recorded with a debit to Interest Revenue and a credit to Cash. B) Investments in debt securities are recorded at cost, including any brokerage fees paid. C) The receipt of interest revenue is recorded with a debit to Cash and a credit to Long-term Securities-Held-to-Maturity. D) Debt securities disposed of at maturity are recorded with a debit to the Short-term or Long-term Investments account and a credit to Cash.
The sprinkler approach is an entry strategy where a company gradually enters countries in sequence
Indicate whether the statement is true or false