Almost All U

question 61

Multiple Choice

Almost all U.S.companies have used the indirect method of preparing the statement of cash flows:

• A)because most users of the financial statements do not understand the direct method.
• B)in spite of the Financial Accounting Standard Board's stated preference for the direct method.
• C)because it usually requires less space in the annual report.
• D)so that stockholders cannot determine how much cash was spent on executives' salaries.

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