The indirect method reverses adjusts for the differences between the accrual-based income statement and "cash flows from operating activities."

Name: The indirect method reverses adjusts for the differences between the accrual-based income statement and "cash flows from operating activities."
Brand: Quizplus
Rating: 4.8 (28 reviews)

Question

Quizplus · Accepted Answer

The indirect method starts with net income as reported on the income statement,followed by the adjustments necessary to convert the accrual-based net income figure to a cash-basis equivalent.

The Indirect Method Reverses Adjusts for the Differences Between the Accrual-Based