The method used by most corporations to prepare the statement of cash flows is the
A) accrual method.
B) direct method.
C) deferral method.
D) indirect method.

Question

Quizplus · Accepted Answer

The indirect method is the most commonly used method by corporations to prepare the statement of cash flows. This method starts with the net income from the income statement and adjusts it for non-cash items and changes in working capital to arrive at the cash flow from operating activities.

The Method Used by Most Corporations to Prepare the Statement