Starting with net income and adjusting it for items that affected reported net income but not cash is called the
A)direct method.
B)indirect method.
C)working capital method.
D)cost-benefit method.

Question

Quizplus · Accepted Answer

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

Starting with Net Income and Adjusting It for Items That