Which of the following methods of reporting cash flows provided by operating activities does the Financial Accounting Standards Board recommend?
A)The indirect method
B)The direct method
C)Either the indirect method or the direct method
D)Neither the indirect method nor the direct method

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board recommends the direct method of reporting cash flows provided by operating activities, but it also allows the use of the indirect method. However, the direct method is considered to provide more useful and transparent information about a company's operating cash flows.

Which of the Following Methods of Reporting Cash Flows Provided