Under the indirect method of preparing the financing section of the statement of cash flows, net cash provided by financing activities is $63,700. If the direct method of preparing the financing section of the statement of cash flows was used:
A)cash provided by financing activities would be more than $63,700.
B)cash provided by financing activities would be less than $63,700.
C)cash provided by financing activities would be the same, $63,700.
D)cannot be determined from the facts given.

Question

Quizplus · Accepted Answer

The method (direct or indirect) used to prepare the statement of cash flows does not affect the cash flows from financing activities. Both methods will result in the same amount for net cash provided by financing activities.

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