The difference between the direct method and the indirect methods of preparing the statement of cash flows is primarily visible in which of the following sections?

Question

Quizplus · Accepted Answer

The difference between the direct method and indirect method is primarily visible in the operating activities section, as the direct method reports cash inflows and outflows directly, while the indirect method adjusts net income for non-cash items and changes in working capital to derive cash flows from operating activities.

The Difference Between the Direct Method and the Indirect Methods