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the total net cash flows from operating activities are identical under both the indirect and direct methods.

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Tundexiidn

It is true that the total net cash flows from operating activities are identical under both the indirect and direct methods.

The operating activities is the section which records the money that the company brings in from its regular business activities.

  • It is important to understand that the two methods (indirect and direct methods) under Operating activities only differ in presentation formats and does not influence the net cash flow.

In conclusion, it is true that the total net cash flows from operating activities are identical under both the indirect and direct methods.

Read more about operating activities:

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