The difference between the direct and the indirect methods applies only to cash from what type of activity?
A) Operating
B) Investing
C) Financing
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

The difference between the direct and indirect method only applies to cash from operating activities. The investing and financing activities are usually reported under the indirect method. Therefore, choice A is the best choice as it specifically identifies the activity to which the direct and indirect methods apply.

The Difference Between the Direct and the Indirect Methods Applies