Under the indirect method,the net cash flow from financing activities would be the same as if the direct method had been used.

Question

Quizplus · Accepted Answer

Under the indirect method, the net cash flow from financing activities is adjusted from the net income by adding back non-cash expenses and subtracting non-cash revenues, and then adjusting for changes in current assets and liabilities. This results in the same net cash flow from financing activities as would be obtained under the direct method. Thus, the statement is true.

Under the Indirect Method,the Net Cash Flow from Financing Activities