Which of the following statements is true about the operating activities section?
A) In a direct method cash flow statement,the section starts with net income.
B) Net income is not included in an indirect method cash flow statement.
C) Regardless of the method used,net cash from operating activities is the same.
D) The indirect method results in a higher amount for cash from operating activities if there is net income and in a lower amount if there is a net loss.

Question

Quizplus · Accepted Answer

Regardless of the method used, the net cash from operating activities is the same because both methods ultimately reconcile net income to net cash provided by operating activities.

Which of the Following Statements Is True About the Operating