单选题

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

A、 supplementary data under U.S. GAAP.
B、 details on the specific sources of operating receipts and payments.
C、 insight on differences between net income and operating cash flows.

【正确答案】 C

【答案解析】

C is correct. Providing insight on the differences between net income and cash flow is a benefit of the indirect method. The indirect method starts with net income and integrates a series of adjustments to calculate cash flow from operations.