Which method shows the net cash flows from operating activities without presenting the individual cash inflows and outflows from those activities.

Question

Quizplus · Accepted Answer

The indirect method starts with net income and adjusts for non-cash items and changes in current assets and liabilities to arrive at net cash flows from operating activities, without presenting the individual cash inflows and outflows from those activities. The direct method, on the other hand, presents individual cash inflows and outflows from operating activities to arrive at net cash flows.

Which Method Shows the Net Cash Flows from Operating Activities