State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

Question

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Answer 1

Question

Chapter 9, Problem 1YT

To determine

State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

Expert Solution & Answer

Explanation of Solution

The difference is in the section that analyses cash flows from operating activities. The direct method recognizes each cash flow, while the indirect method begins with net income and adjusts it to a cash amount.

The net cash flow from operating activities is the same irrespective of the method used. The further two sections—cash from investing activities and cash from financing activities—are the same with both methods.

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Answer 2

Question

Chapter 9, Problem 1YT

To determine

State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

Expert Solution & Answer

Explanation of Solution

The difference is in the section that analyses cash flows from operating activities. The direct method recognizes each cash flow, while the indirect method begins with net income and adjusts it to a cash amount.

The net cash flow from operating activities is the same irrespective of the method used. The further two sections—cash from investing activities and cash from financing activities—are the same with both methods.

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Answer 3

Question

Chapter 9, Problem 1YT

To determine

State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

Expert Solution & Answer

Explanation of Solution

The difference is in the section that analyses cash flows from operating activities. The direct method recognizes each cash flow, while the indirect method begins with net income and adjusts it to a cash amount.

The net cash flow from operating activities is the same irrespective of the method used. The further two sections—cash from investing activities and cash from financing activities—are the same with both methods.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1YT

To determine

State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

Expert Solution & Answer

Explanation of Solution

The difference is in the section that analyses cash flows from operating activities. The direct method recognizes each cash flow, while the indirect method begins with net income and adjusts it to a cash amount.

The net cash flow from operating activities is the same irrespective of the method used. The further two sections—cash from investing activities and cash from financing activities—are the same with both methods.

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Answer 5

Chapter 9, Problem 1YT

To determine

State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

Expert Solution & Answer

Explanation of Solution

The difference is in the section that analyses cash flows from operating activities. The direct method recognizes each cash flow, while the indirect method begins with net income and adjusts it to a cash amount.

The net cash flow from operating activities is the same irrespective of the method used. The further two sections—cash from investing activities and cash from financing activities—are the same with both methods.

Answer 6

Chapter 9, Problem 1YT

To determine

State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

Expert Solution & Answer

Explanation of Solution

The difference is in the section that analyses cash flows from operating activities. The direct method recognizes each cash flow, while the indirect method begins with net income and adjusts it to a cash amount.

The net cash flow from operating activities is the same irrespective of the method used. The further two sections—cash from investing activities and cash from financing activities—are the same with both methods.

Answer 7

Chapter 9, Problem 1YT

To determine

State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

Answer 8

Expert Solution & Answer

Explanation of Solution

The difference is in the section that analyses cash flows from operating activities. The direct method recognizes each cash flow, while the indirect method begins with net income and adjusts it to a cash amount.

The net cash flow from operating activities is the same irrespective of the method used. The further two sections—cash from investing activities and cash from financing activities—are the same with both methods.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 9 - Prob. 1YT Ch. 9 - Prob. 2YT Ch. 9 - Prob. 3YT Ch. 9 - Prob. 4YT Ch. 9 - Prob. 5YT Ch. 9 - Prob. 1Q Ch. 9 - Prob. 2Q Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q

State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

State the major difference among the direct and indirect methods of presenting the cash flow statement and state the similarities.

Explanation of Solution

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Chapter 9 Solutions