Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Why is a private not-for-profit entity more likely to use the direct method of reporting operating activity cash flows than a for-profit business would

image text in transcribed

Why is a private not-for-profit entity more likely to use the direct method of reporting operating activity cash flows than a for-profit business would be? Multiple Choice a) The direct method is the traditional approach for private not-for-profit entities. b) An indirect method reconciliation does not have to be included as it does with for-profit entities. c) The indirect method does not conform as easily with a private not-for- profit entity and its operations. The direct method is likely to show a more positive amount of operating activity cash inflows.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting the basis for business decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

17th edition

007802577X, 978-0078025778

More Books

Students also viewed these Accounting questions

Question

Find the radian measure of the central angle. 1. 2. 3. 4. 29 10

Answered: 1 week ago