Question

The indirect and direct methods:

Answer 1

Answer:

The indirect and direct methods:

A) Are two allowable methods to present operating activities in the statement of cash flows.

Explanation:

• The option A is correct as these two different methods of cash flows are used by different companies and businesses to determine their cash flows.
• The option B is incorrect as they don't affect the presentations of operating, investing and financing activities but only limited to cash flows.
• The option C is incorrect as indirect method of cash flow is mostly used by the companies as compared to the direct method as direct method take large amount of time.
• The option D is incorrect as net cash flow remains the same.

Answer 2

Answer A

Explanation im sure because i got a 100 on my test