Match each of the following items with the appropriate definitions.
-A method of computing and reporting that involves adjusting the net income amount by adding and subtracting items that are necessary to yield net cash provided (used)by operating activities.
A)Indirect method
B)Direct method
C)Statement of cash flows
D)Financing activities
E)Operating activities
F)Investing activities

Question

Quizplus · Accepted Answer

The indirect method adjusts net income for items that affected reported net income but did not affect cash, to calculate cash flow from operating activities.

Match Each of the Following Items with the Appropriate Definitions