When using the indirect method,the amount of net cash flow from operating activities will be the same as it would be if the direct method were used.

Question

Quizplus · Accepted Answer

Both the indirect and direct methods ultimately provide the same amount of net cash flow from operating activities; they just approach the calculation in different ways. The indirect method adjusts net income for changes in non-cash accounts to arrive at the cash provided by operating activities, while the direct method sums up all the cash receipts and payments from operating activities directly.

When Using the Indirect Method,the Amount of Net Cash Flow