The indirect and direct methods use different computations but produce the same amount of net cash provided by operating activities.

Question

Quizplus · Accepted Answer

While the indirect and direct methods use different approaches to calculate net cash provided by operating activities, they should produce the same result. This is because both methods aim to determine the same underlying information about a company's cash flow from operations. Therefore, the net cash provided by operating activities should be the same under both methods.

The Indirect and Direct Methods Use Different Computations but Produce