Which of the following items is relevant when deciding whether to prepare the statement of cash flows using the direct method versus the indirect method?
A)Operating activities only
B)Investing activities only
C)Financing activities only
D)Investing and financing activities only

Question

Quizplus · Accepted Answer

The decision to use the direct method versus the indirect method is relevant for the preparation of the statement of cash flows for operating activities only. The preparation of the sections for investing and financing activities is not affected by this decision.

Which of the Following Items Is Relevant When Deciding Whether