Which of the following sections of the statement of cash flows in presented differently between the direct method and indirect method? operating activities financial activities non cash investing and financing activities investing activities

Which of the following sections of the statement of cash flows in presented differently between the direct method and indirect method? operating activities financial activities non cash investing and financing activities investing activities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following sections of the statement of cash flows in presented differently between the direct method and indirect method?

operating activities

financial activities

non cash investing and financing activities

investing activities

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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