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Question : Which activities are same for computation of direct and indirect method?

Option 1: Cash Flow from Financing activity and cash flow from Investing activity

Option 2: Cash Flow from Operating activity and cash flow from Investing activity

Option 3: Cash Flow from Operating activity and cash flow from Financing activity

Option 4: None of the Above


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Cash Flow from Financing activity and cash flow from Investing activity


Solution : Both the indirect and direct methods will result in the same cash flow for the financing and investing activity sections.

Hence the correct answer is option 1.

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