Almost all U.S.companies have used the indirect method of preparing the statement of cash flows:
A)because most users of the financial statements do not understand the direct method.
B)in spite of the Financial Accounting Standard Board's stated preference for the direct method.
C)because it usually requires less space in the annual report.
D)so that stockholders cannot determine how much cash was spent on executives' salaries.

Question

Quizplus · Accepted Answer

The Financial Accounting Standard Board prefers the direct method of preparing the statement of cash flows, but most U.S. companies still use the indirect method despite this preference.

Almost All U