The indirect and direct methods show the same amount of cash provided by or used for) operating activities.

Question

Quizplus · Accepted Answer

Both the indirect and direct methods are used to calculate the cash flows from operating activities section of the statement of cash flows. While the format and presentation of the information may differ, the end result should be the same for both methods. Therefore, they should show the same amount of cash provided by or used for operating activities.

The Indirect and Direct Methods Show the Same Amount of Cash