Asked by
Trixie Gayle Verde
on Oct 27, 2024
Verified
Most companies use the direct method for disclosing their cash flows from operating activities rather than the indirect method.
Direct Method
A method of presenting the operating activities section of the statement of cash flows that reports components of cash flows from operating activities as gross receipts and gross payments.
- Identify the differences between using direct and indirect methods for reporting operating activities cash flows.
Verified Answer
AT
Learning Objectives
- Identify the differences between using direct and indirect methods for reporting operating activities cash flows.
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