hich of the following statements is true The indirect method

hich of the following statements is true? The indirect method includes all non-cash activities, whereas the direct method includes only the cash activities. The indirect method starts with net income and adjusts it to cash provided by (used for) operating activities. The direct and indirect methods include different types of cash flows in the investing activities section. The indirect method and the direct method will produce a different amount of net cash flow from investing activities.

Solution

The answer is option B.

The indirect method of cash flow starts with net income and adjusts it to cash provided by operating activities. Their is no difference in the cash flows reported in investing and financing activities sections in both direct and indirect methods.