The Statement of Cash Flows Can Be Prepared Using Two

question 10

True/False

The statement of cash flows can be prepared using two different methods-the direct method and the indirect method. Although the indirect method is easier to use, the direct method is considered to be a more favorable method of presenting the data.

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Definitions:

Unearned Revenue

Unearned revenue is income received by an entity for goods or services yet to be delivered or performed, classified as a liability on the balance sheet.