Question : The indirect method of preparing a statement of cash flows is also known as -
Option 1: Balance sheet method
Option 2: Reconcilation method
Option 3: Reserve method
Option 4: Income statement method
Answer (1)
17th Jan, 2024
Correct Answer: Reconcilation method
Solution : According to the indirect technique, the accrual-basis cash flow statement starts with net income and then adds and subtracts non-cash items to reconcil e to real cash flows from operations.
Hence the correct answer is option 2.
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