单选题

Which of the following is most likely a benefit of the direct method for reporting cash flow from operating activities? Compared with the indirect method, the direct method:

A、 mirrors the forecasting approach normally used by analysts.
B、 provides insight on differences between net income and operating cash flows.
C、 provides details on the specific sources of operating receipts and payments.

【正确答案】 C

【答案解析】

The primary benefit of the direct method is that it provides information on the specific sources of operating cash receipts and payments.