Most companies prefer to use the indirect method when preparing a statement of cash flows.

Name: Most companies prefer to use the indirect method when preparing a statement of cash flows.
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Question

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The majority of companies use the indirect method when preparing their statement of cash flows, which reconciles net income to net cash flow from operating activities by adjusting for non-cash expenses and changes in current assets and liabilities.

Most Companies Prefer to Use the Indirect Method When Preparing