Question

In order to determine net cash provided by operating activities, a company must convert net income from an accrual basis to a cash basis under acc 556

Answer 1

Both the direct method and the indirect method. Cash from operating activities usually introduces to the net cash arrival reported in the first section of the explanation of cash flows. Cash flow from operating activities also includes changes in working capital, such as increases or decreases in inventory, short-term debt, accounts receivable and accounts payable.