When Using the Indirect Method,the Amount of Net Cash Flow

question 50

True/False

When using the indirect method,the amount of net cash flow from operationsoperating activities will be higher than it would be if the direct method were used.

---

Definitions:

Direct Method

A cash flow statement preparation method that reports major classes of gross cash receipts and payments. This method is one of two standards for creating the statement of cash flows.

Operating Activities

Activities and transactions related to the primary operations of a company, including revenue and expense transactions impacting the company's net income.

Useful Life

The estimated period over which an asset is expected to be usable by an organization, affecting its depreciation calculation.

Net Cash Inflow

The total amount of cash received minus the total amount of cash spent over a period.