Generally accepted accounting principles allows which of the following methods of preparing the statement of cash flows?

Question

Quizplus · Accepted Answer

Generally accepted accounting principles allow two methods of preparing the statement of cash flows: the direct and indirect methods. The operating, investing, and financing methods refer to the classification of cash flows within the statement of cash flows, rather than methods of preparation. The accrual basis and cash basis of accounting methods refer to the underlying basis of accounting used for the financial statements, not specifically for the statement of cash flows. The cash flows and noncash flows methods are not recognized methods of preparing the statement of cash flows.

Generally Accepted Accounting Principles Allows Which of the Following Methods