The FASB recommends use of the direct method, rather than the indirect method, of preparing a cash flow statement.

Name: The FASB recommends use of the direct method, rather than the indirect method, of preparing a cash flow statement.
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Quizplus · Accepted Answer

The FASB does recommend the use of the direct method for preparing the cash flow statement, as it provides more detailed information about the sources and uses of cash. However, the indirect method is also allowed and commonly used.

The FASB Recommends Use of the Direct Method, Rather Than