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Methods for constructing statement of cash flows

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Reference no: EM132890485

Discussion Question 1:

Some might argue that the statement of cash flows is an optional financial statement and does not provide critical information needed for a firm or investor to succeed. Do you agree with this statement? Justify your answer.

Discussion Question 2:

There are two methods for constructing the statement of cash flows: the direct method and the indirect method.

What are the similarities and differences between the two methods?

Which of the two is most preferred?

Which is required by FASB?

Reference no: EM132890485

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