The [...] method of reporting cash flows from operating activities discloses major classes of gross cash receipts and gross cash payments.
Answer
direct method
Examples are cash received from customers and cash paid to suppliers and employees.
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Open it The direct method of reporting cash flows from operating activities discloses major classes of gross cash receipts and gross cash payments. Examples of such classes are cash received from customers and c
Original toplevel document
3.1.4. Cash Flow Statement rrals, and transactions of an investing and financing nature to arrive at the amount of cash generated from operating activities of €12,741 million. This approach to reporting cash flow from operating activities is termed the indirect method. <span>The direct method of reporting cash flows from operating activities discloses major classes of gross cash receipts and gross cash payments. Examples of such classes are cash received from customers and cash paid to suppliers and employees.
The indirect method emphasizes the different perspectives of the income statement and cash flow statement. On the income statement, income is reported when earned, not nece
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