Advantages of the indirect method of computing cash flows from operating activities include the following except
A) more intuitive and easier to understand
B) connecting back to the income statement and balance sheets
C) satisfies the reconciliation requirement of GAAP
D) shows cash receipts and disbursement clearly
E) all of the above are advantages of the indirect method

Question

Quizplus · Accepted Answer

The indirect method of computing cash flows from operating activities does not show cash receipts and disbursements clearly.

Advantages of the Indirect Method of Computing Cash Flows from Operating