What are the two methods used to prepare the statement of cash flows?
A) Indirect and direct
B) Inflow and outflow
C) Sources and uses
D) Cash and noncash

Question

Quizplus · Accepted Answer

The two methods used to prepare the statement of cash flows are the indirect method and the direct method. The indirect method adjusts net income for non-cash transactions and changes in working capital, while the direct method reports cash inflows and outflows directly.

What Are the Two Methods Used to Prepare the Statement