The Advantages of the Direct Method Include All of the Following

question 75

Multiple Choice

The advantages of the direct method include all of the following except:

• A)It allows for more detailed analysis of operating cash flows.
• B)It provides more information than the indirect method to relate cash inflows and outflows.
• C)It allows for more reliable prediction of future cash flows.
• D)Comparisons between companies are facilitated since most U.S.companies use the direct method.

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