Choose the correct statement about preparation of the Statement of Cash Flows:
A)Only the indirect method is required; the direct method is optional
B)A spreadsheet must be used in computerized situations
C)No particular preparation method is mandated by GAAP
D)The direct method must be used unless available information does not permit it, in which case the indirect method may be used

Question

Quizplus · Accepted Answer

GAAP does not mandate a specific method for preparing the Statement of Cash Flows, allowing companies to choose between the direct and indirect methods.

Choose the Correct Statement About Preparation of the Statement of Cash