Firms using the indirect method must separately disclose the amount of income taxes paid and interest paid.

Name: Firms using the indirect method must separately disclose the amount of income taxes paid and interest paid.
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Question

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According to accounting principles and standards, firms using the indirect method must provide a reconciliation of their net income to cash flow from operations, which includes separately disclosing the amounts of income taxes paid and interest paid.

Firms Using the Indirect Method Must Separately Disclose the Amount