What Method Starts with the Components of Income, the Individual

question 90

Multiple Choice

What method starts with the components of income, the individual revenues and expenses, but not gains and losses, then adds or subtracts the same balance sheet changes involving the same operating accounts? Take an income statement line, then list next to it, horizontally, additions and subtractions.

• A)direct method for calculating the cash flows from investing.
• B)indirect method for calculating the cash flows from investing.
• C)indirect method for calculating the cash flows from financing.
• D)direct method for calculating the cash flows from operations.
• E)indirect method for calculating the cash flows from operations.

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