Answer:
True
Explanation:
First, a Cash Flow statement is a picture of the monetary inflows and outflows for a business for a particular period of time usually a year and it is divided into three sections, Operating, Investing and Financing Sections. It is also a crucial part of the financial statement.
The following statements affirm the question
The Operating activities section is the only area where the Cash flows statement differs when considering the direct and indirect methods.
For the direct method, operating activities net cash is calculated directly deducting cash receipts from payments from customers. However, under the indirect method, operating activities becomes a reconciliation of net cash to net income.
The investing and the financing sections do not differ under both direct and indirect methods of calculation.
