The indirect and direct methods of preparing the cash flow statement are identical except for the
A) significant noncash activity section.
B) operating activities section.
C) investing activities section.
D) financing activities section.

Question

Quizplus · Accepted Answer

The indirect and direct methods of preparing the cash flow statement differ only in how cash flows from operating activities are presented. The investing and financing sections are prepared the same way under both methods.

The Indirect and Direct Methods of Preparing the Cash Flow