If the direct method to prepare the operating section of the cash flow statement is used instead of the indirect method, changes will be required in the financing and investing sections too.

Question

Quizplus · Accepted Answer

The choice between the direct and indirect methods for preparing the operating section of the cash flow statement does not affect the financing and investing sections, as these sections are prepared using the same approach regardless of the method chosen for the operating section.

If the Direct Method to Prepare the Operating Section of the Cash