Which of the following statements about the cash flow statement is TRUE?
A)The operating activities section of both the direct and the indirect method is the same.
B)The indirect method and the direct method will both show the same end results.
C)The direct method begins with profit and adjusts to calculate operating cash flows.
D)The indirect method shows three types of cash flows but the direct method does not.

Question

Quizplus · Accepted Answer

Both the direct and indirect methods will ultimately show the same net cash provided by operating activities, even though they differ in presentation.

Which of the Following Statements About the Cash Flow Statement