Which method or format for preparing the Statement of Cash Flows reports the major operating cash flows on an individual line-item basis?
A) Only direct method
B) Only indirect method
C) Both direct and indirect
D) Neither direct nor indirect

Question

Quizplus · Accepted Answer

The direct method reports the major operating cash flows on an individual line-item basis. The indirect method reconciles changes in balance sheet accounts to derive operating cash flows, but does not provide detailed information on individual line items.

Which Method or Format for Preparing the Statement of Cash