Presented below is the operating activities section of a statement of cash flows for the current year: Which method of preparing the operating activities section was used?
A)The direct method.
B)The indirect method.
C)Either method.
D)Cannot be determined without further information.

Question

Presented below is the operating activities section of a statement of cash flows for the current year:  Which method of preparing the operating activities section was used?
A)The direct method. 
B)The indirect method. 
C)Either method. 
D)Cannot be determined without further information.

Quizplus · Accepted Answer

The operating activities section is shown using adjustments to net income, which indicates that the indirect method was used.

Presented Below Is the Operating Activities Section of a Statement