Question

There is no difference in the investing and financing sections of the statement of cash flows...

There is no difference in the investing and financing sections of the statement of cash flows using the indirect and direct methods.

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Answer #1
TRUE
The indirect and direct method of statement of cash flows differ only in the presentation of operating activities section.
Under direct method of statement of cash flows, net cash provided by operating activities is directly calculated by subtracting cash receipts from customers from cash payments for all expenses.
Under indirect method of statement of cash flows, operating activities section is prepared as a reconciliation of net income to net cash provided by operating activities.
There is no difference in the investing and financing sections of the statement of cash flows using the indirect and direct methods.
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