The distinction between the indirect and direct methods only applies to the cash flows from which section?
A) Operating activities
B) Financing activities
C) Investing activities
D) There is no distinction between the methods.

Question

Quizplus · Accepted Answer

The distinction between the indirect and direct methods applies only to the cash flows from operating activities. This is because these methods are used to present the cash flow from operations in the statement of cash flows, whereas the cash flows from financing and investing activities are typically presented in a similar manner under both methods.

The Distinction Between the Indirect and Direct Methods Only Applies