Document Type
Article
Publication Date
2009
Department
Accounting
Abstract
Using a proxy for nonarticulation, prior researchers found evidence that many companies using the indirect method of reporting net cash flow from operations have a significant level of nonarticulation. The purpose of this study is to determine if companies using the direct method of reporting net cash flow from operations experience significantly lower levels of nonarticulation than companies that use the indirect method of reporting net cash flow from operations. Results show that companies using the direct method have significantly less nonarticulation than companies using the indirect method. This finding suggests that the Financial Accounting Standards Board (FASB) should consider requiring companies to use the direct method of preparing the Statement of Cash Flows.
Original Publication Information
Ward, Terry J., Jon Woodroof, and Benjamin P. Foster. "A Research Note On The Issue Of Non-Articulation And The Method Used To Calculate Net Operating Cash Flow." 2011. Journal of Applied Business Research 25(1): 57-68.
ThinkIR Citation
Ward, Terry J.; Woodruff, Jon; and Foster, Benjamin P., "A Research Note On The Issue Of Non-Articulation And The Method Used To Calculate Net Operating Cash Flow" (2009). Faculty Scholarship. 361.
https://ir.library.louisville.edu/faculty/361
DOI
10.19030/jabr.v25i1.1048
