Only the ________ section differs in a statement of cash flows using the direct method rather than the indirect method.

Question

Quizplus · Accepted Answer

The operating activities section is the only section that differs in a statement of cash flows using the direct method rather than the indirect method. The indirect method starts with net income and adjusts for non-cash items and changes in operating assets and liabilities, while the direct method reports cash inflows and outflows from operating activities directly.

Only the ________ Section Differs in a Statement of Cash