Which of the Following Is Not True of the Direct

Multiple Choice

Which of the following is not true of the direct method of preparing a statement of cash flows?

A) It has a different net cash inflow (outflow) from operating activities than the indirect method.
B) It reports the same net increase or decrease in cash as the indirect method.
C) It gives the user a sense of the magnitude of gross dollars flowing in and out of the company.
D) It has the same cash flows from investing and financing activities as the indirect method.