The FASB's stated preference for reporting operating cash flows is the:
A) Indirect method.
B) Direct method.
C) Working capital method.
D) All financial resources method.

Question

Quizplus · Accepted Answer

The FASB has expressed a preference for the direct method of reporting operating cash flows. This method provides more detailed information about the sources and uses of cash within a company's operations. However, it is also more time-consuming and costly to implement compared to the indirect method. Despite the preference, the indirect method is still widely used in practice.

The FASB's Stated Preference for Reporting Operating Cash Flows Is