Solved: Direct and indirect presentation of cash flows, Accounting Basics

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Direct and indirect presentation of cash flows

Question 1) What are the differences between the direct and indirect presentation of cash flows? Why does the Financial Accounting Standards Board (FASB) allow both methods? Which do you prefer? Why?

Question 2) What are some common ratios that are used to analyze financial information? Which are the most important? What are some examples of how ratios would be used in the decision-making process?

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Accounting Basics: Direct and indirect presentation of cash flows

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