Which of the following is a reason that companies favor the indirect method of preparing the statement of cash flows?
A. It arrives at a larger amount of operating cash flows than with the direct method.
B. Income taxes are lower when the indirect method is used.
C. It is easier and less costly to prepare than the direct method.
D. It indicates which operating activities used or generated cash.
Ans: C. It is easier and less costly to prepare than the direct method.
Business
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A) General ledger B) Compound journal entry C) Posting reference D) Chart of accounts E) Invoice received from seller
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Shares of publicly traded stock can be issued either through a public offering or a rights offering
Indicate whether the statement is true or false.
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