BUS 591 Week 6 DQ 1 Indirect Method vs .pdf
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BUS 591 Week 6 DQ 1 Indirect Method vs.
Direct Method (Ash)
Indirect Method vs. Direct Method. Financial statement preparers have two choices in
preparing the statement of cash flows: the indirect method and the direct method. The
indirect method is used extensively in practice even though the F.A.S.B. has expressed a
preference for the direct method. Discuss the similarities and differences between the direct
and indirect methods, and the advantages of using each method.
Your answer should illustrate understanding of the cash flow statement. A minimum of 100
to 200 words is required for your answer. Respond to at least two of your classmates’ posts.
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