Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $207,000. If the direct method of preparing the operating section of the statement of cash flows was used:
A) cash provided by operating activities would be the same, $207,000.
B) cash provided by operating activities would be more than $207,000.
C) cash provided by operating activities would be less than $207,000.
D) cash provided by financing and investing activities would equal $207,000.

Question

Quizplus · Accepted Answer

The total cash provided by operating activities remains the same under both the direct and indirect methods; only the presentation differs.

Under the Indirect Method of Preparing the Operating Section of the Statement