How are the direct method and the indirect method alike?

Question

Quizplus · Accepted Answer

The direct method and indirect method are alike in that they both apply to the preparation of the statement of cash flows and aim to report the same information, including changes in cash and cash equivalents during the period. However, the main difference between the two methods is in the way they present the information. The direct method reports cash inflows and outflows directly, while the indirect method starts with net income and adjusts for non-cash items and changes in working capital to arrive at cash flow from operating activities.

How Are the Direct Method and the Indirect Method Alike