The [...] discloses operating cash inflows by source and operating cash outflows by use in the operating activities section of the cash flow statement.
Answer
direct method
Question
The [...] discloses operating cash inflows by source and operating cash outflows by use in the operating activities section of the cash flow statement.
Answer
?
Question
The [...] discloses operating cash inflows by source and operating cash outflows by use in the operating activities section of the cash flow statement.
Answer
direct method
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Subject 2. Preparing the Cash Flow Statement perating activities.
There are two methods of converting the income statement from an accrual basis to a cash basis. Companies can use either the direct or the indirect method for reporting their operating cash flow.
<span>The direct method discloses operating cash inflows by source (e.g., cash received from customers, cash received from investment income) and operating cash outflows by use (e.g., cash paid to suppliers, cash paid for interest) in the operating activities section of the cash flow statement.
It adjusts each item in the income statement to its cash equivalent. It shows operating cash receipts and payments. More cash flow information can be obtained and it is mor
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