In the operating activities section of the statement of cash flows,we start with net income when using:
A)The direct method.
B)The indirect method.
C)Both the direct and the indirect method.
D)Neither the direct nor the indirect method.

Question

Quizplus · Accepted Answer

The operating activities section of the statement of cash flows starts with net income when using the indirect method. The direct method starts with cash received from customers and cash paid to suppliers and employees.

In the Operating Activities Section of the Statement of Cash