Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $12,670. If the direct method of preparing the operating section of the statement of cash flows was used:
A)cash provided by operating activities would be more than $12,670.
B)cash provided by operating activities would be less than $12,670.
C)cash provided by operating activities would be the same, $12,670.
D)cannot be determined from the facts given.

Question

Quizplus · Accepted Answer

The net cash provided by operating activities is the same under both the direct and indirect methods; only the presentation format differs.

Under the Indirect Method of Preparing the Operating Section of the Statement