The first item reported in the operating activities section for a statement of cash flows prepared according to the indirect method is
A)Cash
B)Cash received from customers
C)Increase (decrease)in accounts receivable
D)Profit
E)Adjustments to profit

Question

Quizplus · Accepted Answer

The first item reported in the operating activities section of a statement of cash flows prepared using the indirect method is profit (or net income). This figure is adjusted for non-cash transactions and changes in working capital to calculate net cash from operating activities.

The First Item Reported in the Operating Activities Section for a Statement