net cash flows provided by operating activities will be ______ when using the direct method compared to the indirect method.

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26-11-2021
Business

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net cash flows provided by operating activities will be ______ when using the direct method compared to the indirect method.

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Baraq Baraq · Answer 1 · 2021-11-30T13:32:15+01:00

According to cash flow operation analysis, the net cash flows provided by operating activities will be the same when using the direct method compared to the indirect method.

Net Cash flows are used in business management to describe the profit or loss of capital in a given period.

Typically, a positive Net Cash Flows occurs when the is a surplus of cash after paying the expenses.

Hence, in this case, it is concluded that the correct answer is "the same."

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Martebi Martebi · Answer 2 · 2021-11-30T13:35:32+01:00

Cash flows from operating activities often shows the net amount of cash that was received or disbursed during a given period of time. Net cash flows provided by operating activities will be the same as when using the direct method compared to the indirect method.

The direct method is often use in calculating the flow that involves deducting from cash sales.

Cash flow statements is simply defined as the statement that shows the cash receipts, cash payments and net changes in cash that takes place as a result of operating, investing, and financing activities in an accounting period.

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