How does the direct method differ from the indirect method?How does the choice of methods impact the amount of net cash flow from operating activities?
What will be an ideal response?
The direct method shows the specific sources and uses of cash that are associated with operating activities. It does not show adjustments to net income. The amount of net cash flow from operating activities is the same whether it is presented using the indirect or the direct method.
You might also like to view...
All of the following statements are true except:
a. U.S. standards do not require a classified balance sheet. b. IFRS require companies to present classified balance sheets. c. Under IFRS, an unclassified balance sheet based on the order of liquidity is acceptable only when it provides more reliable information than a classified one. d. U.S. standards require a classified balance sheet with liabilities in order by size or by order of liquidity.
Miguel found that his workload was causing him significant stress. To help him get organized, he blocked out time in his calendar each day to deal with his e-mail. Miguel is managing stress through ______.
A. time management B. relaxation C. nutrition D. exercise
What is the probability that x is less than 5, given the function below?
f(x) = (1/10) e-x/10 x
0
A. 0.6065 B. 0.0606 C. 0.3935 D. 0.9393
Choose the correct word or words in parentheses. The boxes with all the equipment (is, are) on the counter