Question

When a company uses the direct method to determine the cash flows from operating activities, cash flows from operating activities will:

A) be identical to the amount reported using the indirect method.

B) be larger if there is a net cash inflow and smaller if there is a net cash outflow compared to the amount reported using the indirect method.

C) always be larger than the amount reported using the indirect method.

D) be larger if there is a net cash outflow and smaller if there is a net cash inflow compared to the amount reported using the indirect method.

Answer

This answer is hidden. It contains 113 characters.