Which of the Statements Below Is Correct When Comparing the Direct

question 110

Multiple Choice

Which of the statements below is correct when comparing the direct and indirect methods of reporting operating cash flows?

• A)The direct method starts with net income and makes adjustments to arrive at the net cash provided by or used in operations.
• B)The indirect method starts with cash collected from customers and details cash inflows and outflows from operations.
• C)The indirect method starts with net income and makes adjustments to arrive at the net cash provided by or used in operations.
• D)The net cash provided by or used in operations will be different depending on whether the direct or indirect method is used.

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