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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
Answer (1)
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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