Which section of the statement of cash flows may be prepared using either the direct method or the indirect method? a. All of these answers are correct.
b. Operating activities
c. Financing activities
d. Investing activities

b. Operating activities

Explanation:

As we know that there are two methods of cash flow statement. The one method is direct method and the other one is indirect method

Also the financing activities and the investing activities should be same calculated under both the methods

But the operating activities would be calculated differently under both the methods

In the direct method, the cash receipts and cash payment would be adjusted while an indirect method, the changes in working capital would be adjusted

Therefore the option b is correct

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