Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. what is the difference between the direct method a

What is the difference between the direct method and the indirect method of presenting the...

70.2K

Verified Solution

Question

Accounting

What is the difference between the direct method and the indirect method of presenting the cash flow from operations?
a. The indirect method lists all cash-in versus cash-out accounts in determining the cash flow from operations.
b. The direct method is the most popular method of determining the cash flow from operations.
c. The indirect method adjusts net income to reconcile it to net cash flow from operating activities.
d. The direct method is more reliable since it adjusts net income to reflect the cash flow from operations.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students