The indirect method of computing cash flows from operating activities adjusts net income rather than each income statement item to a cash basis. a. True
b. False

The correct answer is True (A)

Explanation:

Cash flow statements are prepared by companies using Direct or indirect methods. Both have peculiarities that make them different.

The indirect method of preparing cash flow statements is a method of computing Cash Flow from operating activities that involve editing net income compared to using the direct method since the indirect method needed adjustment of net income generated from operating activities for it to be converted into cash base while the Direct method adjusts each item in the income statement to their worth in cash, making it more accurate.

Operating cash flow is a term used to explain a type of financial cash flow where cash is made from the business operation of a company which includes points and ways cash is generated into the company account.

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: