Only the indirect method of preparing the Statement of Cash Flows reports the reconciliation of net income and net operating cash flow.

Name: Only the indirect method of preparing the Statement of Cash Flows reports the reconciliation of net income and net operating cash flow.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The indirect method starts with net income and adjusts for non-cash transactions and changes in working capital to arrive at net operating cash flow, effectively reconciling the two figures.

Only the Indirect Method of Preparing the Statement of Cash