A cash flow statement starts with profit and adds (or deducts) items on the income statement that did not affect cash to arrive at cash provided by operating activities if the indirect method is used.

Question

Quizplus · Accepted Answer

The indirect method of the cash flow statement starts with net income and adjusts for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

A Cash Flow Statement Starts with Profit and Adds (Or