Explain why the indirect method of preparing cash flows from operating activities is also known as the

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Explain why the indirect method of preparing cash flows from operating activities is also known as the reconciliation method.

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Understanding Financial Accounting

ISBN: 978-1118849385

1st Canadian Edition

Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald

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Question Posted: Jun 11, 2015 06:44 AM

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The indirect method for reporting cash flows from operating activities can create an erroneous impression about noncash expenses (such as depreciation). What is the impression and why is it erroneous?
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Explain why the indirect method of preparing cash flows from operating activities is also known as the

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The indirect method uses accrual based operating income as a starting ...View the full answer

Understanding Financial Accounting

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