The total net cash flows from operating activities differ between the direct and indirect methods.The total net cash flows from operating activities are identical under both the direct and indirect methods.

Question

Quizplus · Accepted Answer

The total net cash flows from operating activities may differ between the direct and indirect methods because the direct method presents specific cash inflows and outflows, while the indirect method adjusts net income for non-cash items and changes in working capital accounts. However, both methods should ultimately arrive at the same total net cash flow from operating activities.

The Total Net Cash Flows from Operating Activities Differ Between