The Financial Accounting Standard Board (FASB) requires companies to prepare their statement of cash flows using the:
A) indirect method
B) direct method
C) reconciliation method
D) none of the above

Question

Quizplus · Accepted Answer

The FASB allows companies to use either the direct or indirect method for preparing the statement of cash flows, but it does not require one specific method.

The Financial Accounting Standard Board (FASB) Requires Companies to Prepare