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cestrela7 [59]
2 years ago
8

te investing section is the only sectio that differes btween t eh direct and indirect methods quizlet

Business
1 answer:
klemol [59]2 years ago
8 0

The investing section is the only section that differs between the direct and indirect methods of preparing the statement of cash​ flows.

The cash flow direct method determines the change in cash receipts and payments reported in the Cash Flows from Operations section. The indirect method adds or subtracts net income earned in a period to calculate changes in asset and liability accounts to determine implied cash flows.

The indirect method adjusts income statement items directly in the cash flow statement based on operating cash inflows and outflows. This method provides a more logical representation of cash flow. Under the indirect method, operating cash flows are calculated on an accrual basis.

Learn more about the indirect method at

brainly.com/question/7283570

#SPJ4

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