We can use the ________ to estimate a project's operating cash flows each period.
A)modified income statement format
B)income statement format
C)balance sheet format
D)annual report format

Question

Quizplus · Accepted Answer

The modified income statement format is the best choice to estimate a project's operating cash flows each period as it separates cash inflows and outflows from non-cash items on the income statement, providing a clearer picture of the project's cash flow. This format is also known as the indirect method of cash flow statement preparation.

We Can Use the ________ to Estimate a Project's Operating