Accounting

Discussion

There will be two discussion questions listed below.  Use the lessons and vocabulary found in the reading. Support your answers with examples and research and cite your sources using APA format.

Discussion Question 1:

Some might argue that the statement of cash flows is an optional financial statement and does not provide critical information needed for a firm or investor to succeed. Do you agree with this statement? Justify your answer.

Discussion Question 2:

There are two methods for constructing the statement of cash flows: the direct method and the indirect method.

• What are the similarities and differences between the two methods?
• Which of the two is most preferred?
• Which is required by FASB?

Solution: