The direct method shows the specific sources and uses of cash that are associated with operating activities.

Name: The direct method shows the specific sources and uses of cash that are associated with operating activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct method of cash flow statement presentation involves the specific identification of cash inflows and outflows associated with operating activities. This method provides a more detailed view of the sources and uses of cash than the indirect method.

The Direct Method Shows the Specific Sources and Uses of Cash