The method of preparing the statement of cash flows that starts with net income and adjusts it for items that affect net income, but do not affect cash is called the:
A)net income method.
B)direct method.
C)indirect method.
D)non-cash method.

Question

Quizplus · Accepted Answer

The indirect method starts with net income and adjusts for non-cash transactions and changes in working capital to calculate cash flows from operating activities.

The Method of Preparing the Statement of Cash Flows That