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
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.
Question : Expenditure method is also known as__________________.
Question : The Difference of assets and libilities side of balance sheet of a not for profit orgination is known as :
Question : Cash Flow Statement by Indirect Method is prepared on the basis of ___________.
Question : Income method is also known as ________________________.
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