Indirect Method vs. Direct Method 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 FA.S.B. has expressed indirect methods, and the advantages of using each method. a preference for the direct method. Discuss the similarities and differences between the direct and Your answer should illustrate understanding of the cash flow statement. A minimum of 100 to 200 words is required for your answer. Respond to at least two of your classmates' posts