A company reconciles net income to net cash flow from operating activities when using the direct method or the indirect method.

Name: A company reconciles net income to net cash flow from operating activities when using the direct method or the indirect method.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Both the direct and indirect methods require reconciliation of net income to net cash flow from operating activities to ensure that all non-cash transactions, changes in working capital, and other adjustments are accounted for.

A Company Reconciles Net Income to Net Cash Flow from Operating