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Which is NOT a way to prepare the statement of cash flows? G direct indirect side...

Which is NOT a way to prepare the statement of cash flows? G

direct

indirect

side by side

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Answer #1

The answer will be option(c)Side by side. Side by side is not a way to prepare the statement of cash flows. The two methods of preparing a statement of cash flow are direct and indirect methods.

In the direct method, all the various types of cash payments and receipts are added and the total is the resulting cash flow.The figures are calculated by using the beginning and also the ending balances of an account. Net increase or decrease is founded out.

In the indirect method,cash flow from operating activities is calculated first, then the cash flow from investing activities and then the cash flow from financing activities.

So, Options (a) and (b) will not be considered.

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