Which of the following is a method for reporting cash flows from operating activities that begins with net income and reconciles to cash flows from operating activities?
A) cash-basis method
B) indirect method
C) direct method
D) accrual method

Question

Quizplus · Accepted Answer

The indirect method begins with net income and makes adjustments to reconcile net income to cash flows from operating activities. The direct method reports actual cash inflows and outflows related to operating activities. The cash-basis method and accrual method are accounting methods for recording revenue and expenses and are not specifically related to reporting cash flows from operating activities.

Which of the Following Is a Method for Reporting Cash