In developing the cash flows from operating activities, most companies in the United States
A)use the direct method.
B)use the indirect method.
C)present both the indirect and direct methods in their financial reports.
D)prepare the operating activities section on the accrual basis.

Question

Quizplus · Accepted Answer

Most companies in the United States use the indirect method to develop cash flows from operating activities, as it is generally easier and less costly to prepare.

In Developing the Cash Flows from Operating Activities, Most Companies