Which statement is true as to the FASB's position on the presentation of the statement of cash flows?
A)The FASB recommends the use of the indirect method,but most companies use the direct method.
B)The FASB recommends the use of the direct method,but most companies use the indirect method.
C)The FASB recommends the use of the direct method,and most companies use the direct method.
D)The FASB recommends the use of the indirect method,and most companies use the indirect method.

Question

Quizplus · Accepted Answer

The FASB recommends the use of the direct method as it provides more useful information to users, but most companies use the indirect method due to the cost and complexity of implementing the direct method. Therefore, the statement that best reflects the FASB's position is that they recommend the use of the direct method, but most companies use the indirect method.

Which Statement Is True as to the FASB's Position on the Presentation