A method of computing and reporting that involves adjusting net income by adding and subtracting items that that do not affect cash provided (used)by operating activities.
A)Financing activities
B)Investing activities
C)Statement of cash flows
D)Indirect method
E)Direct method
F)Operating activities

Question

Quizplus · Accepted Answer

The indirect method is a way of computing and reporting cash flows from operating activities by starting with net income and adjusting it for items that affected reported net income but did not affect cash.

A Method of Computing and Reporting That Involves Adjusting Net