Discussion Topic

This week we will be discussing the Statement of Cash Flows.

FASB recommends the direct method be used for the Statement of Cash Flows but allows other methods however allows the indirect method. You have completed both methods. Do you think FASB should make the direct method the only acceptable method used for the Statement of Cash Flows? Explain your reasoning.

In your response to your peers, consider their answers. Do you agree? Why or why not?