The method of reporting preferred by U.S.GAAP is/are
A)the direct method.
B)the indirect method.
C)both the direct method and the indirect method.
D)the schedule of cash receipts and cash disbursements.
E)the funds flow statement.

Question

Quizplus · Accepted Answer

The U.S. GAAP prefers the direct method for reporting cash flows in the statement of cash flows, although the indirect method is more commonly used in practice.

The Method of Reporting Preferred by U.S.GAAP Is/are