Which of the Following Statements Is True of the Direct

question 1

Multiple Choice

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

• A) The indirect method and the direct method will produce the same amount of net cash provided by operating activities.
• B) The investing activities section is the only section that differs between the direct and indirect methods.
• C) The indirect method shows three types of cash flows, but the direct method does not.
• D) There is no difference in the way the operating activities section is presented.