The cash flow from investing activities section appears exactly the same,whether the company uses the direct or the indirect method to prepare the statement of cash flows.

Question

Quizplus · Accepted Answer

The cash flow from investing activities section will have the same information regardless of whether the direct or indirect method is used to prepare the cash flow statement. This is because the investing activities involve the purchase and sale of long-term assets, investments, and other activities that do not involve day-to-day operations or financing. Therefore, the cash flows from investing activities can be easily identified and reported in a consistent manner using either method.

The Cash Flow from Investing Activities Section Appears Exactly the Same,whether