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View Full Version : Indirect Statement of cash flow


mm1982
Sep 7, 2008, 06:51 PM
Can someone please tell me why firms prefer indirect method more than the direct method and if the information that appears on indirect method is helpful for the customers.

Thanks

MLSNC
Sep 9, 2008, 07:29 AM
The indirect method tends to be easier to prepare. However, the direct method tends to be more informative. Both can be helpful, but either way may require explanation to the customer.