The direct method is considered to be more informative and easier to compare with the other financial statements.

Name: The direct method is considered to be more informative and easier to compare with the other financial statements.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct method of presenting the cash flow statement provides a detailed breakdown of cash inflows and outflows, making it easier to understand and compare with other financial statements like the income statement and balance sheet.

The Direct Method Is Considered to Be More Informative and Easier