Under the Indirect Method of Preparing the Operating Section of the Statement

question 64

Multiple Choice

Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $207,000. If the direct method of preparing the operating section of the statement of cash flows was used:

• A) cash provided by operating activities would be the same, $207,000.
• B) cash provided by operating activities would be more than $207,000.
• C) cash provided by operating activities would be less than $207,000.
• D) cash provided by financing and investing activities would equal $207,000.

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