The approach to preparing a statement of cash flows that adjusts net income to cash flows from operations is the

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The approach that adjusts net income to cash flows from operations is known as the indirect method of preparing a statement of cash flows. This method takes the net income from the income statement and adjusts it for non-cash items such as depreciation, changes in current assets and liabilities, and other items to arrive at the cash generated or used by operating activities. Option A, the all financial resources method, is not a commonly used method for preparing a statement of cash flows. Option B, the direct method, involves determining cash inflows and outflows directly and is an alternative approach to preparing a statement of cash flows that is rarely used. Option D, the worksheet method, is not a recognized method for preparing a statement of cash flows.

The Approach to Preparing a Statement of Cash Flows That