Which of the following statements is true?

a. The direct method of calculating cash flows from operations starts with net income and adjusts for noncash revenues and expenses and changes in current assets and current liabilities.

b. The indirect method of calculating cash flows from operations adjusts each item in the income state- ment to a cash basis.

c. The descriptions in

(a) and

(b) should be reversed.

d. The direct method is easier to use than the indirect method.