Tracy used the indirect method of determining cash flow from operations (CFO), had they used the direct method:
A) CFO would have been higher as gains are not deducted in arriving at CFO
B) CFO would have been lower as losses and depreciation are not added back in arriving at CFO
C) CFO would have been the same
D) it is not possible to determine what CFO would have been without more information

Question

Quizplus · Accepted Answer

The direct and indirect methods result in the same cash flow from operations; they only differ in presentation.

Tracy Used the Indirect Method of Determining Cash Flow from Operations