Why is a private not-for-profit entity more likely to use the direct method of reporting operating activity
Question:
Why is a private not-for-profit entity more likely to use the direct method of reporting operating activity cash flows than a for-profit business would be?
a. The direct method is the traditional approach for private not-for-profit entities.
b. An indirect method reconciliation does not have to be included as it does with for-profit entities.
c. The indirect method does not conform as easily with a private not-for-profit entity and its operations.
d. The direct method is likely to show a more positive amount of operating activity cash inflows.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Question Posted: