Which phrase below best describes the direct method for reporting operating cash flows?
A. A method employing accrual-based accounting to convert cash flows to GAAP Net Income.
B. A series of adjustments to Net Income to arrive at operating cash flows.
C. A summary of operating transactions resulting in either a debit or credit to cash.
D. A method that incorporates financing and investing activities into cash flows from operations.
Answer: C
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