A cash flow statement that is prepared under the direct method starts with:
A)Net income
B)Gross Profit
C)None of these
D)Income from operations

Name: A cash flow statement that is prepared under the direct method starts with: A)Net income B)Gross Profit C)None of these D)Income from operations
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Question

Quizplus · Accepted Answer

The direct method of preparing a cash flow statement starts with cash receipts and cash payments, not with net income, gross profit, or income from operations.

A Cash Flow Statement That Is Prepared Under the Direct