Which section of the statement of cash flows may be prepared using either the direct method or the indirect method?
A) Operating activities
B) Investing activities
C) Financing activities
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

The operating activities section of the statement of cash flows may be prepared using either the direct method or the indirect method. However, the investing activities and financing activities sections must be prepared using the indirect method. D is incorrect because the investing and financing activities sections cannot be prepared using both the direct and indirect methods.

Which Section of the Statement of Cash Flows May Be