Analysts' preferences regarding use of the direct method or indirect method may be based on all except which of the following reasons?

Multiple Choice

• The indirect method facilitates cash flow projections.
• The indirect method provides a means to evaluate the quality of earnings.
• The reconciliation between accrual earnings and operating cash flows for firms using the direct method enhances the comparability of operating cash flows to those of firms using the indirect method.
• The direct method facilitates cash flow projections.