(Appendix) Cash flows from investing activities are computed and reported in the same manner under the direct and indirect method.

Question

Quizplus · Accepted Answer

Both the direct and indirect method use the same formula to calculate cash flows from investing activities, which is the difference between cash inflows and cash outflows from the acquisition and disposal of long-term assets and investments. Therefore, the reporting of cash flows from investing activities is consistent regardless of which method is used.

(Appendix) Cash Flows from Investing Activities Are Computed and Reported