Which of the Following Statements Is True of the Direct

Multiple Choice

Which of the following statements is true of the direct and indirect method of preparing the statement of cash flows?

A) The indirect method and the direct method will produce a different amount of net cash flow from investing activities.
B) The indirect method begins with Net Income and adjusts it to net operating cash flows.
C) The direct and indirect methods include different types of cash flows in the investing activities section.
D) The indirect method includes all non-cash activities, whereas the direct method includes only the cash activities.