Compare the direct and indirect method of cash flow statement preparation with the help of an...
Question:
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
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View this answerThere 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...
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The Statement of Cash Flows: Purpose, Format & Examples
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Chapter 2 / Lesson 4
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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.
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