While the Indirect Method Is Prevalent in the Construction of Cash

While the indirect method is prevalent in the construction of cash flow statements in the U.S., why might a firm choose to construct its cash flow statement using the direct method?

A) The direct method will always show a higher net change in cash.
B) The direct method is usually easier for users to understand.
C) The direct method is required by some industries.
D) The direct method will always make the firm's management look better.
E) None of the above answer choices is correct.

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