Answer:
The correct answer is direct method.
Explanation:
To elaborate a cash flow with the direct method, consists in general terms in redoing the income statement, based on the cash impact principle, to determine a cash flow for operating activities.
The direct method to present the cash flow requires disaggregating the items that affect the flow of funds, such as collection for sales, interest and dividends, payments to suppliers or purchases, to employees, tax payments, among other items.
This method requires restructuring the account plan to collect the information in the way it should be presented. For this reason, according to accountingtools.com, it is rarely used and the indirect method is used instead.
