The two approaches to reporting cash flows provided by operating activities are the
A)Direct and indirect methods
B)The basic and standard methods
C)The gross margin and contribution margin methods
D)The liquidity and profitability methods

Question

Quizplus · Accepted Answer

The two approaches to reporting cash flows provided by operating activities are the direct and indirect methods. The direct method reports cash inflows and outflows directly from operating activities, while the indirect method adjusts net income to arrive at the cash provided by operating activities.

The Two Approaches to Reporting Cash Flows Provided by Operating