Which of the Following Statements Is Correctregarding the Statement of Cash

question 115

Multiple Choice

Which of the following statements is correctregarding the statement of cash flows?

• A)Analysts prefer the direct method to the indirect method.
• B)Companies prefer the direct method because it is easier and less expensive to prepare.
• C)A survey of large companies showed 98% of them use the indirect method.
• D)All of these choices.

Understand and apply the process of journalizing transactions in various business scenarios.

Identify and correct common errors in journal entries and trial balances.

Prepare trial balances and understand their role in the accounting cycle.

Recognize the effects of transactions on the accounting equation.

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