Question: Financial statement preparers have two choices in preparing the statement of cash flows: the indirect method and the direct method. The indirect method is used

Financial statement preparers have two choices in preparing the statement of cash flows: the indirect method and the direct method. The indirect method is used extensively in practice even though the F.A.S.B. has expressed a preference for the direct method. Discuss the similarities and differences between the direct and indirect methods, and the advantages of using each method.

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