The direct method of preparing the statement of cash flows
A) results in more cash from operating activities, but less cash from investing activities, and the same total cash flow as the indirect method.
B) converts each item on the income statement to its cash equivalent.
C) reports interest and dividends received in the investing activities section.
D) All of these choices.
B
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Which of the following statements is incorrect?
a. Transaction exposure represents only the exchange rate risk when converting net foreign cash inflows to U.S. dollars or when purchasing foreign currencies to send payments. b. Economic exposure represents any impact of exchange rate fluctuations on a firm's future cash flows. c. Firms can simply focus on hedging their foreign currency payables and/or receivables to hedge economic exposure. d. The management of economic exposure tends to serve as a long-term solution rather than just a short-term solution.
Dominant brands offer sales promotion deals less frequently, because most deals subsidize only current users
Indicate whether the statement is true or false