Which method of preparing the operating activities section of the statement of cash flows consists of a summary of each component of operating transactions that result in either a debit or a credit to cash?
A) Direct
B) Indirect
C) Accrual
D) Cash

Question

Quizplus · Accepted Answer

The direct method of preparing the operating activities section of the statement of cash flows involves listing each major operating cash receipt and payment, essentially summarizing each component of operating transactions that affect cash.

Which Method of Preparing the Operating Activities Section of the Statement