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a. It keeps the use of cash vague so the reader cannot tell the exact use
b. It is a less detailed summary version of use of cash
c. It takes the accrual basis of accounting and converts it to cash basis
d. It shows the reader how well the management is performing
It takes the accrual basis of accounting and converts it to cash basis
c ...........................................
The correct answer converter accrual basis of accounting to a cash entitlement answer C
the answer is option c cash flow in indirect method takes in accrual basis and converts into cash basis.
the third choice is correct answer
What does the indirect method of preparing the cash flow statement effectively accomplish?
c. It takes the accrual basis of accounting and converts it to cash basis
