Practice free →
Home › Bihar Board Class 12 (Commerce) › Accountancy › Cash Flow Statement › Which method gives information useful for estima…

Which method gives information useful for estimating future cash flows?

AFunds flow method
BIndirect method
CRatio method
DDirect method
Answer & Solution
Correct answer: D. Direct method
Showing gross receipts and payments by class helps forecast future cash flows, which the indirect method cannot do.
Solve this in the app — Bihar Board Class 12 (Commerce) practice & 24k+ MCQs →
Related questions