Under the direct method,dividends from investments are included when calculating cash flows from operations.

Question

Quizplus · Accepted Answer

Under the direct method, dividends from investments are included in the cash flows from operations section, along with other cash inflows and outflows directly related to the company's core business activities. This is in contrast to the indirect method, which starts with net income and makes adjustments to arrive at the cash flows from operating activities.

Under the Direct Method,dividends from Investments Are Included When Calculating