Which of the following sections of the statement of cash flows are presented differently between the direct method and indirect method?
A)investing activity
B)financing activity
C)operating activity
D)non-cash activity

Question

Quizplus · Accepted Answer

The operating activity section is presented differently between the direct method and indirect method. The direct method reports individual cash inflows and outflows from operating activities, while the indirect method starts with net income and adjusts for any non-cash items and changes in working capital accounts to arrive at operating cash flows. The investing activity, financing activity, and non-cash activity sections are presented similarly in both methods.

Which of the Following Sections of the Statement of Cash