Final answer:
Most U.S. public companies do not use the direct cash flow format; rather, they typically use the indirect method for cash flow reporting with the option to disclose a direct method statement additionally.
Step-by-step explanation:
The statement 'The direct cash flow format is used by most U.S. public companies' is False.
U.S. public companies are actually more likely to use the indirect method for cash flow reporting as required by the Financial Accounting Standards Board (FASB), although they may also provide a direct method statement as a supplementary disclosure.
The direct method reports cash flows from operating activities by listing major classes of gross cash receipts and payments, while the indirect method starts with net income and adjusts for changes in balance sheet accounts to arrive at the cash from operating activities.