The _____ displays (lists) cash receipts and disbursements from operating activities.
A)bottom-up method
B)top-down method
C)indirect method
D)direct method
E)cash method

Question

Quizplus · Accepted Answer

The direct method of preparing the statement of cash flows lists operating cash receipts and cash disbursements, whereas the indirect method adjusts net income for non-cash items to arrive at the operating cash flow. The bottom-up and top-down methods are not methods of preparing the statement of cash flows, and the cash method refers to a method of accounting for cash receipts and disbursements.

The _____ Displays (Lists) Cash Receipts and Disbursements from Operating