Asked by Elizabeth Steinke on Apr 27, 2024
Verified
The reporting of financing activities in the statement of cash flows is identical under the direct method and indirect method.
Financing Activities
Transactions involving raising funds for the company through borrowing or issuing equity.
- Comprehend the elements and configuration of the cash flow statement.
- Discern the differences in the direct and indirect methods used for documenting cash flows from operational activities.
Verified Answer
HL
Helio LeyvaApr 29, 2024
Final Answer :
True
Explanation :
The direct and indirect methods differ in how they present operating activities; financing and investing activities are reported in the same way under both methods.
Learning Objectives
- Comprehend the elements and configuration of the cash flow statement.
- Discern the differences in the direct and indirect methods used for documenting cash flows from operational activities.
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