Eor the current year, Accord Company decided to switch from the indirect method to the direct method

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Eor the current year, Accord Company decided to switch from the indirect method to the direct method for reporting cash flows from operating activities on the statement of cash flows. Will the change cause the amount of net cash flow from operating activities to be

(a) larger,

(b) smaller, or

(c) the same as if the indi¬ rect method had been used? Explain.

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Financial Accounting

ISBN: 9780324188035

9th Edition

Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess

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