Question: Analysts' preferences regarding use of the direct method or indirect method may be based on all except which of the following reasons? Multiple Choice The

Analysts' preferences regarding use of the direct method or indirect method may be based on all except which of the following reasons?

Multiple Choice

  • The indirect method facilitates cash flow projections.
  • The indirect method provides a means to evaluate the quality of earnings.
  • The reconciliation between accrual earnings and operating cash flows for firms using the direct method enhances the comparability of operating cash flows to those of firms using the indirect method.
  • The direct method facilitates cash flow projections.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Analysis of Options To determine which of the options does not explain an analysts preference for either the direct or indirect method we need to eval... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!