Most companies use the direct method for disclosing their cash flows from operating activities rather than the indirect method.

Name: Most companies use the direct method for disclosing their cash flows from operating activities rather than the indirect method.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

While the direct method presents actual cash inflows and outflows, it is more time-consuming and costly to prepare. The indirect method is the most commonly used method for disclosing cash flows from operating activities.

Most Companies Use the Direct Method for Disclosing Their Cash