Question

The difference between the direct and indirect method of computing the cash flow statement occurs in the _______ activities section.

Answer 1

The correct answer to your question is "Operating"

Answer 2

The difference between the direct and indirect method of computing cash flow statement occurs in the OPERATING activities section.
Computing of cash flow statement involves three basic sections, which are operating activities, investing activities and financing activities sections. The method of calculation for operating activities section is different for direct and indirect methods, but the other two sections are calculated the same way for the two methods.