Although the Guidance in U

question 12

Multiple Choice

Although the guidance in U.S.GAAP and IFRS states a preference that companies present cash flows from operations using the _____, most companies present cash flows from operations as _____.

• A)a reconciliation of net income to operating cash flow (the direct method); direct method
• B)direct method; a reconciliation of net income to operating cash flow (the indirect method)
• C)cash method; accrual method
• D)accrual method; cash method
• E)none of the above