Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $277,000. If the direct method of preparing the operating section of the statement of cash flows was used:
A)net cash provided by operating activities would be the same, $277,000.
B)net cash provided by operating activities would be more than $277,000.
C)net cash provided by operating activities would be less than $277,000.
D)net cash provided by financing and investing activities would equal $277,000.

Question

Quizplus · Accepted Answer

The net cash provided by operating activities remains the same under both the indirect and direct methods; only the presentation differs.

Under the Indirect Method of Preparing the Operating Section of the Statement