When the indirect method is used to prepare the statement of cash flows,what is the starting point of the operating activities section?
A) Net income as reported on the income statement
B) Total assets as reported on the balance sheet
C) Sales as reported on the income statement
D) Cash collections from customers

Question

Quizplus · Accepted Answer

The starting point for the operating activities section under the indirect method is net income as reported on the income statement.

When the Indirect Method Is Used to Prepare the Statement