Flashcards: Statement of Retained Earnings

A company has to report cash flows generated from its operating activities. Which of the following is true in regards to the presentation of operating activities on the statement of cash flows?

FASB allows the indirect method but not the direct method

FASB has expressed a preference for the indirect method but allows the direct method

FASB allows the direct method but not the indirect method.

FASB has expressed a preference for the direct method but allows the indirect method

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