The cash flow from investing activities appears exactly the same, whether the company uses the direct or the indirect method to prepare the statement of cash flows.

Question

Quizplus · Accepted Answer

The cash flow from investing activities section is prepared in the same way under both the direct and indirect methods, as it focuses on cash flows related to investments in long-term assets and investments, which are not affected by the choice between direct and indirect methods for operating activities.

The Cash Flow from Investing Activities Appears Exactly the Same