[...] method shows operating cash receipts and payments.
Answer
The direct method
Question
[...] method shows operating cash receipts and payments.
Answer
?
Question
[...] method shows operating cash receipts and payments.
Answer
The direct method
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Subject 2. Preparing the Cash Flow Statement ncome) 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. <span>It shows operating cash receipts and payments. More cash flow information can be obtained and it is more easily understood by the average reader.
The indirect method reconciles net income to net cash flow from operating activities by adjusting net income for all non-cash items and the net changes in the op
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