Which of the following would be presented differently on the statement of cash flows under the direct method versus the indirect method?
A)Cash from operating activities
B)Cash from investing activities
C)Cash from financing activities
D)Cash from retained earnings activities

Question

Quizplus · Accepted Answer

Cash from operating activities would be presented differently under the direct method versus the indirect method. The direct method presents the actual cash inflows and outflows from operating activities, while the indirect method starts with net income and makes adjustments to reconcile it to the actual cash flows. Cash from investing activities, financing activities, and retained earnings activities would be presented in the same way under both methods.

Which of the Following Would Be Presented Differently on the Statement