The format for the operating cash section which begins with net income and shows adjustments to derive operating cash flow, is known as the [...] .
Answer
indirect format
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Open it The format for the operating cash section which begins with net income and shows adjustments to derive operating cash flow, is known as the indirect format .
Original toplevel document
Open it In the cashflow statement direct format , which refers to the operating cash section appearing simply as operating cash receipts less operating cash disbursements. An alternative format for the operating cash section, which begins with net income and shows adjustments to derive operating cash flow, is known as the indirect format . The alternative formats and detailed rules are discussed in the reading on understanding the statement of cash flows.
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