The Net Cash Flow from Operating Activities Is Calculated in the Same

question 148

True/False

The net cash flow from operating activities is calculated in the same way, whether the company uses the direct or the indirect method of preparing the statement of cash flow. The only difference in the two methods is the way the financing activities section is prepared.

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Definitions:

Nonverbal Behavior

Communication methods other than spoken or written language, such as gestures, facial expressions, and posture.

Intuition

An ability to understand or know something immediately based on instinctive feelings rather than conscious reasoning.

Curiosity

A strong desire to know or learn something.

Workaround

An alternative method of accomplishing a task or solving a problem when the usual process is ineffective or unavailable.