How does gaap classify cash flows as operating

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Problem 1: Where in the GAAP codification is cash flows referenced? How does GAAP classify cash flows as operating, investing, and financing?

Problem 2: Which method for preparing the statement of cash flows does FASB recommend, and which method do publicly traded companies generally use today? Is there a difference between the FASB recommendation and current practice? If so, why do you think that difference might exist?

Problem 3: Between the direct and indirect methods for calculating operating cash flows, which method do you think provides more transparency? Explain.

Reference no: EM132992366

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