Using the direct method to determine cash flows from operations,start with net income,then add back all expenses not paid in cash and subtract all revenues that do not provide cash.

Question

Quizplus · Accepted Answer

The direct method of determining cash flows from operations involves listing all cash receipts and payments, including cash received from customers and cash paid to suppliers and employees, rather than starting with net income and adjusting for non-cash items.

Using the Direct Method to Determine Cash Flows from Operations,start