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

Question

Quizplus · Accepted Answer

The direct method presents each individual item of cash inflows and outflows within the financing activities section, rather than reconciling net income to net cash provided by financing activities. The indirect method reconciles net income to net cash provided by financing activities.

The Direct Method of Presenting the Financing Activities Section of the Statement