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What is the difference between the direct and the indirect method of calculating cash flow from operations? A. The direct method starts with sales and follows cash as it flows through the income statement, while the indirect method starts with net income and adjusts for non-cash charges and other items. B. The indirect method starts with gross income and adjusts to cash flow from operations, while the direct method starts with gross profit and flows through the income statement to calculate cash flows from operations. C. Balance sheet items are not included in the cash flow from operations for the direct method, while they are included for the indirect method. |