The indirect method starts with net earnings and converts them to net cash provided by operating activities. This means that:

A - the indirect method adjusts net earnings for contra account balances.

B - the indirect method calculates net earnings as the difference between net assets and net liabilities.

C - the indirect method adjusts net earnings, for items that affected reported net earnings but did not affect cash.

D - the indirect method starts with net earnings and adds back all the expenses relating to operating activities.