Accounting · Cash Flow Statement
Which method of preparing cash flow from operating activities reconciles net profit before tax to operating cash flows by adjusting for non-cash expenses, working capital changes, and non-operating items?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Direct method
- 2Classification by function
- 3Indirect method✓
- 4Classification by nature
Correct answer
Indirect method
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