The Direct method produces _________ results as the indirect method in presenting the cash flow.a.Higherb.Lowerc.Differentd.Same

To determine the correct answer to the question regarding the results produced by the Direct method compared to the Indirect method in presenting cash flow, let's analyze the options:

1. Understanding the Direct and Indirect Methods:

   • The Direct method calculates cash flow from operating activities by directly summing all cash receipts and cash payments during the reporting period.
   • The Indirect method starts with net income and adjusts for non-cash transactions and changes in working capital, thereby converting the accrual basis of accounting to cash basis.

2. Comparative Analysis:

   • Both methods ultimately arrive at the same cash flow from operating activities; however, they do so through different processes. The final cash flow result reported in the financial statements will be identical for both methods.

3. Conclusion: Given the above understanding, the answer to the question is that both methods produce the same results in terms of cash flow from operating activities.

Final Answer

d. Same