The net cash flow from operating activities is calculated in the same way,whether the company uses the direct or the indirect method of preparing the statement of cash flow.

Question

Quizplus · Accepted Answer

The net cash flow from operating activities can differ in presentation between the direct and indirect methods, as the direct method lists actual cash receipts and payments, while the indirect method adjusts net income for non-cash transactions and changes in working capital.

The Net Cash Flow from Operating Activities Is Calculated in the Same