the total net cash flows from operating activities are identical under both the indirect and direct methods.

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03-12-2021
Business

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the total net cash flows from operating activities are identical under both the indirect and direct methods.

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Tundexi Tundexi · Answer 1 · 2021-12-10T12:39:20+01:00

It is true that the total net cash flows from operating activities are identical under both the indirect and direct methods.

The operating activities is the section which records the money that the company brings in from its regular business activities.

It is important to understand that the two methods (indirect and direct methods) under Operating activities only differ in presentation formats and does not influence the net cash flow.

In conclusion, it is true that the total net cash flows from operating activities are identical under both the indirect and direct methods.

Read more about operating activities:

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