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Question: Why is a private not-for-profit


Why is a private not-for-profit entity more likely to use the direct method of reporting operating activity cash flows than a for-profit business would be?
a. The direct method is the traditional approach for private not-for-profit entities.
b. An indirect method reconciliation does not have to be included as it does with for-profit entities.
c. The indirect method does not conform as easily with a private not-for-profit entity and its operations.
d. The direct method is likely to show a more positive amount of operating activity cash inflows.

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