Which method will yield higher cash flows from operating activities?
A)The indirect method.
B)The direct method.
C)Both direct and indirect methods will yield the same amount.
D)Depends upon the situation.

Question

Quizplus · Accepted Answer

Both the direct and indirect methods of calculating cash flows from operating activities will yield the same amount. The difference between the two methods lies in the presentation and the process of calculation, not in the final amount of cash flows from operating activities.

Which Method Will Yield Higher Cash Flows from Operating Activities