The method of presentation method of operating cash flows 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 method described is the direct method, which presents cash inflows and outflows separately. The other options (equity method, set-off method, and net method) do not specifically relate to presenting operating cash flows in this manner.

The Method of Presentation Method of Operating Cash Flows That