Question: The Indirect method of computing cash flows from Operating activities will always produce more cash than the Direct method because it considers the add back

The Indirect method of computing cash flows from Operating activities will always produce more cash than the Direct method because it considers the add back of non-cash expenses. Discuss?

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Lets discuss the key differences between the indirect and direct methods and why the indirect method may appear to result in higher cash flows 1 Indir... View full answer

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