The majority of organizations use the indirect method when preparing their statement of cash flows.

Name: The majority of organizations use the indirect method when preparing their statement of cash flows.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

The indirect method is the most commonly used method for preparing the statement of cash flows. This method starts with net income and makes adjustments for non-cash items and changes in working capital to calculate the cash flows from operating activities.

The Majority of Organizations Use the Indirect Method When Preparing