The indirect method of presenting the investing activities section of the statement of cash flow reconciles net income to net cash provided by investing activities.

Question

Quizplus · Accepted Answer

The indirect method of presenting the statement of cash flow reconciles net income to net cash provided by operating activities, not investing activities. The investing activities section shows the effects of transactions involving the purchase or sale of long-term assets or investments.

The Indirect Method of Presenting the Investing Activities Section of the Statement