Ask Question
BusinessBusiness
15 January, 03:00

The direct method and the indirect method are two alternative presentations for cash flows from investing activities. What is the difference between the direct method and the indirect method for the statement of cash flows?

+2
Answers (1)
  1. 15 January, 03:25
    0
    Answer: The given statement is false.

    Explanation: The direct method and the indirect method are two methods of presenting operating activities of a business in a cash flow statement.

    The main difference between direct and indirect method of cash flow is that in indirect method the accountant adjust various factors like non cash transactions from the net income of the year.

    Whereas in direct method, transactions involving usage and incoming of cash are used to calculate net inflow or outflow from operating activities.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The direct method and the indirect method are two alternative presentations for cash flows from investing activities. What is the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
1. What are some considerations in choosing a financial institution? Which one do you think would be the most important consideration for you in choosing a financial institution? 2. What are the pros and cons of U. S. savings bonds? 3.
Answers (1)
Cavalier Copper shows on its most recent balance sheet $840 million in total liabilities, $10 billion in treasury stock (recorded at par of $1/share) and $520 million in common stock outstanding (also recorded at par of $1/share).
Answers (1)
The maturity matching, or "self-liquidating", approach to financing involves obtaining the funds for permanent current assets with a combination of long-term capital and short-term capital that varies depending on the level of interest rates.
Answers (1)
Assume that the nominal interest rate is 11 percent, the inflation rate is 8 percent, and government debt at the beginning of the year equals $4 trillion. By how much is the government budget deficit overstated as a result of inflation? A) $0.
Answers (1)
The order of presentation of activities on the statement of cash flows is
Answers (1)
New Questions in Business
Technical tool that provides users with the ability to study, control, and improve processes of all types is a:
Answers (1)
Johansen Corporation has a target capital structure of 60 percent common stock and 40 percent debt. Its cost of equity is 14 percent, and the cost of debt is 8 percent. The relevant tax rate is 30 percent. What is the company's WACC?
Answers (1)
On November 1, 2018, Aviation Training Corp. borrows $49,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 6% note payable. Interest is payable at maturity. Aviation's year-end is December 31. Required: 1., 2. & 3.
Answers (1)
A stock's price is simply the current market price, and it is easily observed for publicly traded companies.
Answers (1)
Why is important to have a personal financial so important
Answers (1)
Home » Business » The direct method and the indirect method are two alternative presentations for cash flows from investing activities. What is the difference between the direct method and the indirect method for the statement of cash flows?
Sign Up Forgot Password?