When the Operating Activities Section of the Statement of Cash

When the operating activities section of the statement of cash flows is reported using the direct method, the FASB requires:

A) The income statement to be prepared under the cash basis of accounting.
B) The preparation of the statement of cash flows under the indirect method be completed and reported with the statement of cash flows prepared using the direct method.
C) Footnotes to the financial statements disclosing the difference between net income and the cash provided or used by financing activities.
D) A reconciliation of net income to net cash provided or used by operating activities.
E) Noncash investing and financing activities be included in the statement of cash flows.