If a company uses the direct method of reporting cash flows from operating activities, then a reconciliation of net income and cash flow from operations is also required.

Name: If a company uses the direct method of reporting cash flows from operating activities, then a reconciliation of net income and cash flow from operations is also required.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct method requires a reconciliation of net income to cash flows from operating activities to provide a complete picture of cash flow changes.

If a Company Uses the Direct Method of Reporting Cash