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Question

The main difference between the direct method & indirect method involves the cash flows from activities.

A
operating
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B
investing
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C
financing
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D
payment
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Solution

The correct option is A operating
The main difference between the direct method and the indirect method of presenting the statement of cash flows involves the cash flows from operating activities. There are no differences in the cash flows from investing activities and/or the cash flows from financing activities.

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