A statement of cash flows in which net income does not appear has been calculated using the
A) direct method.
B) indirect method.
C) present value method.
D) working capital method.
E) gross income method.

Question

Quizplus · Accepted Answer

The direct method of preparing a statement of cash flows presents the specific cash flows associated with items that affect cash flow, such as cash received from customers and cash paid to suppliers, without starting with net income as a base, which is a characteristic of the indirect method.

A Statement of Cash Flows in Which Net Income Does