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What is the required separate disclosure for firms using the direct method in the statement of cash flows?

User Melyssa
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Final answer:

Firms using the direct method in the statement of cash flows are required to provide separate disclosures for cash flows from operating, investing, and financing activities. For each category, the firm should provide a breakdown of the specific cash inflows and outflows that occurred during the period.

Step-by-step explanation:

When using the direct method in the statement of cash flows, firms are required to provide separate disclosure for three types of cash flows: Cash flows from operating activities. Cash flows from investing activities. Cash flows from financing activities. For each category, the firm should provide a breakdown of the specific cash inflows and outflows that occurred during the period.

Firms using the direct method in the statement of cash flows are required to provide separate disclosures for cash flows from operating, investing, and financing activities. For each category, the firm should provide a breakdown of the specific cash inflows and outflows that occurred during the period. Cash flows from operating activities. Cash flows from investing activities. Cash flows from financing activities.

User Lei Guo
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