Multiple Choice
The advantages of the direct method include all of the following except:
A) It allows for more detailed analysis of operating cash flows.
B) It provides more information than the indirect method to relate cash inflows and outflows.
C) It allows for more reliable prediction of future cash flows.
D) Comparisons between companies are facilitated since most U.S.companies use the direct methoD.Most U.S.companies use the indirect method.
Correct Answer:

Verified
Correct Answer:
Verified
Q27: Free cash flow is a positive cash
Q36: Equipment with a cost of $10,000 and
Q38: The reporting of financing activities is identical
Q42: Treasury stock purchases made with cash are
Q52: To determine net cash provided by or
Q68: Which of the following would not be
Q69: If sales are $850,000 and the beginning
Q90: Cash transactions relating to the purchase and
Q136: Assume a company uses the direct method
Q209: Depreciation is added back to net income