Why should I choose AnalystNotes?

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

Find out more

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?
Check Answer Previous Q Next Q Print

User Contributed Comments 1

User Comment
kingirm i find indirect method easier to grasp. ..
You need to log in first to add your comment.
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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® 2026 Level I Curriculum, Volume 2, Module 4.