Final answer:
Most U.S. public companies do not use the direct cash flow format; they prefer the indirect method. The direct method, although encouraged, is considered more cumbersome to report.
Step-by-step explanation:
The direct cash flow format is not used by most U.S. public companies. Instead, these companies tend to use the indirect method for reporting cash flows from operating activities in their financial statements. The direct method is less commonly used because it requires a detailed breakdown of receipts and payments, which can be cumbersome and costly to produce. However, the Financial Accounting Standards Board (FASB) does encourage the use of the direct method.