Net cash flows from operating activities will have the same total no matter which method is used,direct or indirect.

Question

Quizplus · Accepted Answer

The net cash flows from operating activities will be the same regardless of which method is used because both methods adjust net income for non-cash items and changes in working capital to determine the cash flows from operating activities. However, the cash flows from operating activities may be presented differently depending on the method used.

Net Cash Flows from Operating Activities Will Have the Same