Presented below is the operating activities section of the statement of cash flows for Bruin Consulting for 2012: Which method of preparing the operating activities section has Bruin Consulting used?
A) The direct method
B) The indirect method
C) The allowance method
D) Cannot be determined without further information

Question

Presented below is the operating activities section of the statement of cash flows for Bruin Consulting for 2012:  Which method of preparing the operating activities section has Bruin Consulting used?
A) The direct method 
B) The indirect method 
C) The allowance method 
D) Cannot be determined without further information

Quizplus · Accepted Answer

The statement of cash flows presented shows adjustments to net income, which is a characteristic of the indirect method of preparing the operating activities section.

Presented Below Is the Operating Activities Section of the Statement