Under the direct method of preparing the operating section of the statement of cash flows,net cash provided by financing activities is $558,000.If the indirect method of preparing the statement of cash flows was used:
A)net cash provided by financing activities would be less than $558,000.
B)net cash provided by financing activities would be more than $558,000.
C)net cash provided by financing activities would be the same,$558,000.
D)net cash provided by operating activities would equal $558,000.

Question

Quizplus · Accepted Answer

The method of preparing the operating section (direct or indirect) of the statement of cash flows does not affect the calculation of cash flows from financing activities; therefore, the amount remains the same regardless of the method used.

Under the Direct Method of Preparing the Operating Section of the Statement