Most companies use the indirect method of computing the change in cash from operating activities for the

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Most companies use the indirect method of computing the change in cash from operating activities for the following reason(s):

a. The FASB prefers the indirect method.

b. It is less costly to prepare than the direct method.

c. The indirect method arrives at a higher cash inflow amount.

d. Both

(a) and

(b) are correct.

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Financial Accounting

ISBN: 9780073208145

5th Edition

Authors: Robert Libby, Patricia Libby, Daniel Short

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Question Posted: Jun 24, 2024 02:01 AM

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Most companies use the indirect method of computing the change in cash from operating activities for the

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Financial Accounting

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