When comparing net cash provided by operating activities using the indirect versus direct methods:
A) net cash is higher using the indirect method.
B) net cash is lower using indirect method.
C) there is no difference between the two methods.
D) depreciation expense is used in the direct method.

Question

Quizplus · Accepted Answer

The net cash provided by operating activities will be the same whether the indirect or direct method is used. The difference between the two methods lies in the presentation and the process of calculation, not in the final amount of net cash provided by operating activities.

When Comparing Net Cash Provided by Operating Activities Using the Indirect