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BUS 591 Week 6 DQ 1 Indirect Method vs. Direct Method (Ash)

BUS 591 Week 6 DQ 1 Indirect Method vs. Direct Method (Ash)

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Author: Lester Dunn
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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.

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