The advantages of the direct method include all of the following except:
A)It allows for more detailed analysis of operating cash flows.
B)It provides more information than the indirect method to relate cash inflows and outflows.
C)It allows for more reliable prediction of future cash flows.
D)Comparisons between companies are facilitated since most U.S.companies use the direct method.

Question

Quizplus · Accepted Answer

The direct method does not facilitate comparisons between companies since most U.S. companies use the indirect method, not the direct method.

The Advantages of the Direct Method Include All of the Following