The Statement of Cash Flows presentation method that separates gross cash inflows from cash outflows is known as the:
A) equity method;
B) direct method;
C) set-off method;
D) net method.

Question

Quizplus · Accepted Answer

The presentation method that separates gross cash inflows from cash outflows is known as the direct method. This method presents the cash receipts and cash payments in a format that shows the sources and uses of cash, which is considered more informative than the indirect method.

The Statement of Cash Flows Presentation Method That Separates Gross