Question: Please answer the following using the guidance provided within the syllabus ( specific questions ) for Chapter 5 : 1 . Why is the statement

Please answer the following using the guidance provided within the syllabus

(

specific questions

)

for Chapter

5

1 .

Why is the statement of cash flows so important?

2 .

Why do you think most companies prefer the indirect method over the direct method when preparing the operating activities section of the statement of cash flows?

3 .

Why does the FASB encourage the use of the direct method?

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