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The only part that differs in a statement of cash flows using the direct method rather...

The only part that differs in a statement of cash flows using the direct method rather than the indirect method is the:

Question options:

investing activities section.

operating activities section.

financing activities section.

none of the above.
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Answer #1

The only part that differs in a statement of cash flows using the direct method rather than indirect method is

" operating activities section "

Statement of cash flows can be prepared by using two methods i.e., Direct method and Indirect method.

The direct method of presenting the statement of cash flow presents the cash flows associated with the items that affects the cash. items such as

i)Cash paid to employees

ii)Cash received from debtors..

Under the indirect method of preparation of statement of cash flows, it presents the information about cash that is generated from operations and effects of various changes in the balance sheet.

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