The SEC requires public companies to use the indirect method for the statement of cash flows.

Name: The SEC requires public companies to use the indirect method for the statement of cash flows.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

The SEC allows both the direct and indirect methods for the statement of cash flows, but companies must also provide a reconciliation of net income to net cash provided by operating activities if they choose the direct method.

The SEC Requires Public Companies to Use the Indirect Method