Which cashflow method is more easily understood by the average reader?
Answer
The direct method
Question
Which cashflow method is more easily understood by the average reader?
Answer
?
Question
Which cashflow method is more easily understood by the average reader?
Answer
The direct method
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Subject 2. Preparing the Cash Flow Statement 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 <span>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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