Which of the Following Observations Concerning the Comparisons Between the Direct

Multiple Choice

Which of the following observations concerning the comparisons between the direct and indirect approaches of presenting a cash flow statement is true?

A) The final number of cash flows from operating activities is different under the two approaches.
B) The direct approach provides a clearer picture of cash flows related to operations.
C) Authoritative bodies have generally expressed a preference for the indirect method.
D) A separate reconciliation of operating cash flows and net income is required under the indirect approach.