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Which one is the recommended method for presenting cash flows from operating activities a.Direct Method or b.Indirect.

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Question added by Jawad Qureshi , Financial Consultant , AFAZA FZ LLC/Midas Safety Dubai
Date Posted: 2014/11/11
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

More Appropriate:  Use of Indirect Method.

Mohammed Ismael
by Mohammed Ismael , Finance Manager , confidintional

It is depend on the users so let us say management and finance i prefer direct cash flow for shareholders and investor indirect

Usman Baig
by Usman Baig , Assistant Manager Finance , ZIMS Security Private Limited

Direct METHOD

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Preferably a lot of the authors of the statement of cash flows using the indirect method in the presentation of cash flows from operating activities because the preparation method is much easier and less expensive than the direct method as well as it shows the effects of monetary changes on net income (as amended accounts of non-cash) more clearly than provided by the direct method.

 

Correct the answer b.Indirect

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

indirect method 

AARIF KHAN CMA
by AARIF KHAN CMA , Management Accountant & Budget Controller , Fahad A Al Rajhi Holding Company

Most of the companies prepare cash flows statement using the indirect method.

yasir arfat
by yasir arfat , Payroll Accountant , Saudi German Hospital Dubai

Recomended method is direct but indirect method is more common in practice

Cash Flows Method:

 

All most all the organizations are using indirect method of cash flow due to its convenience and easy to preparation methods. 

Indirect method is preferred

Ezzidin Ibrahim
by Ezzidin Ibrahim , Financial Controller , Karim Food Industries

b. Indirect since its easier to prepare

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