The main difference between the direct method and the indirect method cash flow statements is
A) the presentation of cash flow from operations
B) the balance of the income from operations
C) the treatment of dividends received and paid
D) the inclusion of investment gains and losses

Question

Quizplus · Accepted Answer

The main difference between the direct and indirect method cash flow statements is the presentation of cash flow from operations. The direct method reports actual cash inflows and outflows while the indirect method adjusts net income to arrive at cash flow from operations.

The Main Difference Between the Direct Method and the Indirect