The direct method of preparing the statement of cash flows shows increases and decreases in noncash current assets and current liabilities to arrive at cash flows from operating activities.

Name: The direct method of preparing the statement of cash flows shows increases and decreases in noncash current assets and current liabilities to arrive at cash flows from operating activities.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

The direct method shows actual cash inflows and outflows from operating activities.

The Direct Method of Preparing the Statement of Cash Flows