Answer :
Answer:
True
Explanation:
statement of cash flows can be regarded as financial statement which gives analysis of how cash as well as cash equivalent is affected by any changes in balance sheet accounts.
The indirect method of statement of cash flows begins with loss or the net income as well as the substraction of values from non cash revenue which result in case flow as a result of operating activities.
Operating activities are termed as the activities that are performed at daily operation. The daily transactions of the goods and services and the daily record of the cash inflow and outflow transactions are the operating activities. It is very closely related to the daily operation of the firm.
The correct answer is True.
The cash flow can be regarded as an income report that shows how movements in financial statements impact liquidity position.
The indirect way of cash flow statement starts with a deficit or net earnings, as well as the deduction of values from non-cash sales, culminating in a liquidity flow as a result of operating activities.
Therefore by reference to the above-specified statement, the answer is true.
To know more about the preparation of the sections of the operating activities, refer to the link below:
https://brainly.com/question/25776078