Using the direct method we adjust the items on the income statement to directly show the cash inflows and outflows from operations.

Name: Using the direct method we adjust the items on the income statement to directly show the cash inflows and outflows from operations.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct method adjusts the items on the income statement to show the actual cash inflows and outflows from operating activities, making it a more accurate representation of a company's cash flow.

Using the Direct Method We Adjust the Items on the Income