Indirect method cashflow
Discipline: Accounting
Type of Paper: Coursework
Academic Level: Undergrad. (yrs 3-4)
Paper Format: APA
Pages: 1
Words: 275
Question
Instructions
200 words
The indirect method is the most popular format used for the operating activities section of the statement of cash flows in the United States. Although the indirect method is the most popular, the direct method is preferred by the FASB. Discuss some of the reasons the direct method may have advantages over the indirect reporting format.
