Asked by
Jhasmin Tonelada
on Oct 15, 2024
Verified
When preparing the operating activities section of the statement of cash flows using the direct method,revenues and gains with no cash inflows are added back to net income.
Direct Method
A cash flow statement approach that lists major classes of gross cash receipts and payments.
Revenues and Gains
Income generated from normal business operations and other positive financial events.
- Acquire knowledge of the disparities between direct and indirect methodologies for reporting operating activities' cash flows.
Verified Answer
AS
Learning Objectives
- Acquire knowledge of the disparities between direct and indirect methodologies for reporting operating activities' cash flows.
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