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

Question

Quizplus · Accepted Answer

The IASB recommends the use of the direct method for presenting the statement of cash flows, but most companies use the indirect method due to its simplicity and the ease of preparation.

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