Compare the direct and indirect method of cash flow statement preparation with the help of an example.
Cash Flow Statement:
A cash flow statement reports the cash transaction of a business entity. This statement depicts the incoming and disbursement of cash and other cash equivalents used and received during one accounting period through different business activities.
Answer and Explanation: 1
There are two methods of making a cash flow statement- direct and indirect methods.
The direct method of cash flow statement makes use of the actual...
See full answer below.
Become a member and unlock all Study Answers
Start today. Try it nowCreate an account
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
fromChapter 2 / Lesson 4
Learn about statements of cash flows. Discover what a cash flow statement is and see the indirect method statement of cash flows, net cash flows, and other examples.