When net cash flow from operating activities is presented by the direct method,the statement of cash flows is accompanied by a supplementary schedule reconciling:
A)Net cash flow from operating activities with net sales.
B)Net income with the net increase or decrease in cash and cash equivalents.
C)Net income with net cash flow from operating activities.
D)Net cash flow from operating activities shown in the statement with that which would result from use of the indirect method.

Question

Quizplus · Accepted Answer

The direct method requires a reconciliation of net income to net cash flow from operating activities, showing adjustments for changes in working capital and other non-cash items.

When Net Cash Flow from Operating Activities Is Presented by the Direct