The decision whether to use the direct or indirect method on the statement of cash flows is relevant with respect to
A) operating activities only.
B) investing activities only.
C) financial activities only.
D) All activities.

Question

Quizplus · Accepted Answer

The decision between using the direct or indirect method affects the reporting of cash flows from operating activities only. Investing and financing activities are reported in the same way under both methods.

The Decision Whether to Use the Direct or Indirect Method