Probe into the Preparing Method of the Cash Flow Statement

Replacing the previous statement of changes in financial condition, the cash flow statement improves the quality of the accounting information, however there are various problems in its preparation. Starting from the concept of the cash flow statement, and through comparative analysis on several kinds of common preparing methods, this paper sums up the pros and cons of each method and their applicability for the purpose of being convenient for the accountants to choose different preparing methods accounting to the needs of different trades.