Differences between the direct and indirect presentation

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1. 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?

2. What are some common ratios used to analyze financial information? Which are the most important? What are some examples of how ratios are used in the decision-making process? Two popular methods of financial statement analysis are horizontal analysis and vertical analysis. What are the differences between these two methods?

Reference no: EM13759905

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