The indirect and direct methods of preparing the statement of cash flows are identical except for the
A) financing activities section.
B) investing activities section.
C) operating activities section.
D) significant noncash activities section.

Question

Quizplus · Accepted Answer

The indirect and direct methods of preparing the statement of cash flows differ only in the operating activities section. The indirect method adjusts net income for changes in non-cash accounts, while the direct method lists all cash receipts and payments from operating activities.

The Indirect and Direct Methods of Preparing the Statement of Cash