Question

which method of cash flow reporting starts with net profit for calculating cash flow from operating activities?​

Answer 1

Answer:

The indirect method begins with net income from the income statement then adds back noncash items to arrive at a cash basis figure. The direct method tracks all transactions in a period on a cash basis and uses actual cash inflows and outflows on the cash flow statement.

Answer 2

Answer:

The indirect method begins with net income from the income statement then adds back noncash items to arrive at a cash basis figure. The direct method tracks all transactions in a period on a cash basis and uses actual cash inflows and outflows on the cash flow statement.