The only difference in a statement of cash flows prepared under the direct method as opposed to the indirect method is the presentation of investing activities.

Question

Quizplus · Accepted Answer

The main difference between the direct and indirect methods is in the presentation of cash flows from operating activities; the direct method lists actual cash inflows and outflows from operating activities, while the indirect method starts with net income and adjusts for non-cash transactions and changes in working capital.

The Only Difference in a Statement of Cash Flows Prepared