The only difference between the cash flow statement prepared under the indirect method as opposed to the direct method is the manner in which the:
A) cash flows from financing activities are presented.
B) schedule of noncash items is presented.
C) cash flows from investing activities are presented.
D) cash flows from operating activities are presented.

Question

Quizplus · Accepted Answer

The only difference between the cash flow statement prepared under the indirect method as opposed to the direct method is the manner in which the cash flows from operating activities are presented. The indirect method begins with net income and adjusts for non-cash items, while the direct method reports actual cash inflows and outflows from operating activities. The presentation of cash flows from financing and investing activities and noncash items remains the same under both methods.

The Only Difference Between the Cash Flow Statement Prepared Under