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    mm1982's Avatar
    mm1982 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 7, 2008, 06:51 PM
    Indirect Statement of cash flow
    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.

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    MLSNC's Avatar
    MLSNC Posts: 158, Reputation: 17
    Junior Member
    		  
    #2

    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.
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