Asked by Riranda Moorman on May 25, 2024
Verified
The operating activities section of the statement of cash flows may be prepared using the ______________ method or the ______________ method.
Direct Method
A cash flow statement preparation approach that lists major payments and receipts of cash from operational activities directly.
Indirect Method
An approach used in cash flow statements where net income is adjusted for non-cash transactions, deferred revenues, and expenses to calculate cash flow from operating activities.
- Master the art of developing the statement of cash flows by harnessing the potential of direct and indirect methods.
Verified Answer
Learning Objectives
- Master the art of developing the statement of cash flows by harnessing the potential of direct and indirect methods.
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