A company that uses the direct method will show more cash from operating activities than a company that uses the indirect method.

Name: A company that uses the direct method will show more cash from operating activities than a company that uses the indirect method.
Brand: Quizplus
Rating: 4.7 (32 reviews)

Question

Quizplus · Accepted Answer

The method (direct or indirect) used to present cash flows from operating activities does not affect the total amount of cash reported from operating activities; it only changes the presentation format.

A Company That Uses the Direct Method Will Show More