Question: If a business decides to switch from the indirect method to the direct method for reporting cash flows from operating activities (this is permitted per

If a business decides to switch from the indirect method to the direct method for reporting cash flows from operating activities (this is permitted per GAAP), will the change in methods cause the amount of the net cash flow from operating activities to be: (a) smaller, (b) larger, or (c) the same? Explain.

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