While preparing the financial statements for Standards Corp., Ash Roe decided that the creation of a direct-method cash flow statement in addition to a reconciliation of net income to cash flow was of little additional use to investors. Ash believes the cost of preparing this statement outweighs any benefits the investors would receive. Thus, he prepared only the reconciliation. Which section in the authoritative guidance best deals with the reconciliation of net income and cash flows from operations.

Answer rating: 100% (QA)

In the authoritative guidance for financial reporting the section that specifically deals w... View the full answer