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Which of the following statements is true? A) The direct method is known as the reconciliation method. B) Under U.S. GAAP, the indirect method starts

Which of the following statements is true?

A) The direct method is known as the reconciliation method.

B) Under U.S. GAAP, the indirect method starts with income before income taxes.

C) Standard setters encourage the use of the direct method over the indirect method.

D) All of these statements are true.

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