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- 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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