the starting point for preparing the operating activities section using the indirect method is ______.

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02-12-2021
Business

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the starting point for preparing the operating activities section using the indirect method is ______.

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Martebi Martebi · Answer 1 · 2021-12-07T09:56:39+01:00

Organizations often have different operations. The starting point for preparing the operating activities section using the indirect method is Net income.

Net income is simply known to be the gross profit and removing all other expenses, costs and any other income and revenue sources that are not included in gross income.

A lot of other costs is often removed from gross to make it be at net income. They include interest on debt, taxes, and operating expenses or overhead costs.

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