Which of the Following Statements Regarding Use of the Direct

question 79

Multiple Choice

Which of the following statements regarding use of the direct and indirect methods of determining cash flows from operating activities is incorrect?

• A)The indirect method starts with net income.
• B)The direct method calculates cash collected from customers.
• C)The majority of U.S.companies use the indirect method.
• D)The FASB recommends use of the indirect methoD.The FASB recommends use of the direct method.

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