The direct method of presenting the financing activities section of the statement of cash flows reconciles net income to net cash provided by financing activities.

Question

Quizplus · Accepted Answer

The direct method of presenting the financing activities section of the statement of cash flows reconciles changes in non-current liability and equity accounts to arrive at net cash provided or used by financing activities. The indirect method reconciles net income to net cash provided or used by financing activities.

The Direct Method of Presenting the Financing Activities Section of the Statement