The total net amount of cash flow from operating activities will be the same, whether you use the direct or the indirect method of preparing the statement of cash flow.

Name: The total net amount of cash flow from operating activities will be the same, whether you use the direct or the indirect method of preparing the statement of cash flow.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct and indirect methods may present the operating cash flows in different formats, but the total net amount is the same in both methods.

The Total Net Amount of Cash Flow from Operating Activities