Under the indirect method,the increase or decrease in stockholders' equity is handled in the investing section of a cash flow statement.

Question

Quizplus · Accepted Answer

Under the indirect method, changes in stockholders' equity (such as the issuance or repurchase of shares) are not included in the investing section of the cash flow statement. Instead, they are reported in the financing section. The investing section primarily includes cash flows related to the purchase or sale of long-term assets, such as property, plant, and equipment.

Under the Indirect Method,the Increase or Decrease in Stockholders' Equity