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Basic Question 2 of 8

While the indirect method of preparing the Statement of Cash Flows is more commonly used, the direct method is considered to be more easily understood by users. True or False?
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User Contributed Comments 1

User Comment
kingirm i find indirect method easier to grasp. ..
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

describe the steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data

CFA® 2025 Level I Curriculum, Volume 2, Module 4.