The direct method of reporting operating cash flows:
A) Is recommended by IFRS.
B) Is recommended,but not required,by IFRS.
C) Is used by most companies.
D) Is not required by IFRS.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

The direct method is recommended by IFRS for reporting operating cash flows, but it is not required. Most companies use the indirect method instead.

The Direct Method of Reporting Operating Cash Flows