Net cash flows provided by operating activities are:
A)greater under the direct,than indirect method.
B)greater under the indirect,than direct method.
C)the same under the direct and indirect method.
D)all of the choices are correct.

Question

Quizplus · Accepted Answer

The net cash flows provided by operating activities are the same under both the direct and indirect methods. The difference between the two methods lies in the presentation of cash flows, not in the total amount of cash flows reported.

Net Cash Flows Provided by Operating Activities Are