Reporting of financing activities is the same under both the direct and the indirect methods.

Question

Quizplus · Accepted Answer

The reporting of financing activities is the same under both the direct and the indirect methods. Whether the company uses the direct method or the indirect method to report cash flows from operating activities, financing activities are reported in the same way. This includes reporting cash inflows and outflows related to borrowing and repaying debt, issuing and repurchasing equity, and paying dividends.

Reporting of Financing Activities Is the Same Under Both the Direct