Changes in current assets and current liabilities are reported on the statement of cash flows, using the indirect method, in the
A) operating activities
B) financing activities
C) investing activities
D) separate schedule of noncash activities

Question

Quizplus · Accepted Answer

Changes in current assets and current liabilities are related to operating activities, specifically the management of cash inflows and outflows in the day-to-day operations of the business. Therefore, the changes are reported in the operating activities section of the statement of cash flows using the indirect method.

Changes in Current Assets and Current Liabilities Are Reported on the Statement