Most public companies use the indirect method to prepare their statement of cash flows because the FASB prefers this method.

Name: Most public companies use the indirect method to prepare their statement of cash flows because the FASB prefers this method.
Brand: Quizplus
Rating: 4.9 (30 reviews)

Question

Quizplus · Accepted Answer

The FASB does not express a preference for the indirect method; companies often use it because it is generally easier and less costly to prepare than the direct method.

Most Public Companies Use the Indirect Method to Prepare Their