Which of the Following Statements Is True of the Direct

question 9

Multiple Choice

Which of the following statements is true of the direct and indirect method of preparing the statement of cash flows?

• A)The indirect method and the direct method will produce a different amount of net cash flow from investing activities.
• B)The indirect method begins with Net Income and adjusts it to net operating cash flows.
• C)The direct and indirect methods include different types of cash flows in the investing activities section.
• D)The indirect method includes all non-cash activities, whereas the direct method includes only the cash activities.

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