The amount of cash flow from operations will be the same under the indirect method or the direct method.

Question

Quizplus · Accepted Answer

Both the indirect and direct methods of calculating cash flow from operations will yield the same result; they simply approach the calculation in different ways. The indirect method adjusts net income for changes in non-cash accounts, while the direct method tallies all cash receipts and payments from operating activities.

The Amount of Cash Flow from Operations Will Be the Same