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Danasha Jean gilles
on Nov 15, 2024

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Cash generated from operating activities may be computed by using:

A) the indirect method.
B) the direct method.
C) the estimating method.
D) Both A and B

Indirect Method

A method of reporting cash flows from operating activities by adjusting net income for changes in non-cash accounts.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used.

Operating Activities

Transactions and events that affect net income, primarily related to the core operations of a business.

  • Determining cash movements in operations by employing both the direct and indirect methodologies.
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TK
Taylor KilgallenNov 22, 2024
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