Which of the Following Statements About the Statement of Cash

question 67

Multiple Choice

Which of the following statements about the statement of cash flows is false?

• A)The direct method provides more information than the indirect method
• B)Firms can use either the direct method or the indirect method of reporting operating activities
• C)Cash flows from operating activities is larger if the indirect method is used instead of the direct method
• D)If firms use the direct method,they must also provide a reconciliation of net income and operating cash flows

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