To which of the following is the operating activities section of the statement of cash flows prepared using the direct method most similar?

Question

Quizplus · Accepted Answer

The direct method of preparing the operating activities section of the statement of cash flows is similar to converting an income statement to the cash basis of accounting, as it involves adjusting net income for non-cash transactions and converting accrual-based revenues and expenses to cash receipts and payments.

To Which of the Following Is the Operating Activities Section