Using the indirect method,the operating section of the Statement of Cash Flows begins with Net income and is followed by Adjustments to reconcile net income to Net cash provided by operating activities.

Question

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This statement is accurate. The indirect method of preparing the operating section of the Statement of Cash Flows starts with net income and then lists adjustments that need to be made to reconcile net income with net cash provided by operating activities.

Using the Indirect Method,the Operating Section of the Statement of Cash