Chapter 12, Problem 8Q

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To contrast: the advantages and disadvantages of direct and indirect method of preparing statement of cash flows.

To determine

To state: which method is popularly acceptable and that is preferred by FASB.