The method used to compute net cash provided by operating activities that adjusts net income for items that affected reported net income but did not affect cash is known as the
A) indirect method
B) direct method
C) adjustment method.
D) income statement method

Question

Quizplus · Accepted Answer

The indirect method starts with net income and adjusts for non-cash transactions and changes in working capital to arrive at net cash provided by operating activities.

The Method Used to Compute Net Cash Provided by Operating