Which of the following statements is correctregarding the statement of cash flows?
A)Analysts prefer the direct method to the indirect method.
B)Companies prefer the direct method because it is easier and less expensive to prepare.
C)A survey of large companies showed 98% of them use the indirect method.
D)All of these choices.

Question

Quizplus · Accepted Answer

A survey of large companies showed that 98% of them use the indirect method, which means that statement C is the correct answer. Statements A and B are not correct because analysts generally prefer the direct method, and there is no evidence that companies prefer it due to its ease and cost-effectiveness. Statement D is not correct because only statement C is correct.

Which of the Following Statements Is Correctregarding the Statement of Cash