ACC 291 Week 4 Discussion Question 1

ACC 291 Week 4 Discussion Question 1

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Why are companies required to prepare a statement of cash flows?

Why is the statement of cash flows divided into three sections?

What does each section tell you about the operations of a company?

What are the differences between the direct and indirect presentation of cash flows?

Why does the Financial Accounting Standards Board allow both methods? Which do you prefer? Why?

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