A method of computing and reporting the net cash provided (used)by operating activities that lists the major items of operating cash receipts,and then subtracts the major items of operating cash payments.
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 direct method is a way of preparing the cash flow statement where major classes of gross cash receipts and gross cash payments are disclosed. This method shows the specific sources of operating cash receipts and the specific uses of operating cash payments.

A Method of Computing and Reporting the Net Cash Provided