Which of the Following Is Not True of the Direct

question 32

Multiple Choice

Which of the following is not true of the direct method of preparing a statement of cash flows?

• A)it gives the user a sense of the magnitude of gross dollars flowing in and out of the company.
• B)it has the same cash flows from investing and financing activities as the indirect method.
• C)it has a different net cash inflow (outflow)from operating activities than the indirect method.
• D)it reports the same net increase or decrease in cash as the indirect method.

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