The only part that differs in a statement of cash flows using the direct method rather than the indirect method is:

Question

Quizplus · Accepted Answer

The direct method and indirect method will result in the same net cash inflow/outflow for the period, but they differ in how operating activities are presented. The direct method focuses on the actual cash inflows and outflows from operating activities (such as cash received from customers or paid to suppliers), while the indirect method starts with net income and adjusts for non-cash items, then reconciles with changes in current assets and liabilities to arrive at cash flows from operating activities. Therefore, only the presentation of the operating activities section differs between the two methods.

The Only Part That Differs in a Statement of Cash