Question: Your audit manager, has asked you to explain to your client, Michael, the difference between a cash flow statement prepared using the indirect method and
Your audit manager, has asked you to explain to your client, Michael, the difference between a cash flow statement prepared using the indirect method and a cash flow statement prepared using the direct method. How would you explain this to him? a. The amount of net cash flow from the operations section is different under both methods. b. The amount of net cash flow from the operations, investing. and financing sections is the same under both methods. The presentation of the operations section is different under both methods c. The amount of net cash flow from the operations and investing sections is different under each method. d. The presentation of the operations, investing, and financing sections are different under both methods but the amount of net cash flow from the operations, investing, and financing sections under both methods are the same
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