A reconciliation of profit and cash flows is required using either the direct or indirect method of disclosing cash flows from operations

Question

Quizplus · Accepted Answer

A reconciliation of profit and cash flows is a necessary step in order to determine the cash inflows and outflows from operations. This can be achieved by using either the direct method, where all cash transactions are directly recorded, or the indirect method, where non-cash items such as depreciation and changes in working capital are adjusted to calculate cash flows from operations.

A Reconciliation of Profit and Cash Flows Is Required Using