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a "supplementary method."
a "direct method."
an "indirect method."
a "flow of funds method."
My choice is (C) an indirect method.
In indirect method, the net income figure from the income statement is used to calculate the amount of net cash flow from operating activities. Since the income statement is prepared on accrual basis in which revenue is recognized when earned and not when received therefore net income does not represent the net cash flow from operating activities and it is necessary to adjust earnings before interest and tax (EBIT) for those items which effect net income although no actual cash is paid or received against them.
>>>>>>>>>>>>>>>> an "indirect method."
The cash flow statement in the United States is most likely to appear using ........................................................................an "indirect method."
The correct answer is choice (C) an indirect method
Third answer :
an "indirect method."
Agreed with majority Answer
Correct Ans is.
an "indirect method."
