Difference between revisions of "Direct method"
(→Related coursework) |
|||
| Line 5: | Line 5: | ||
According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | ||
:[[Direct method]]. One of two methods of preparing the cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately. | :[[Direct method]]. One of two methods of preparing the cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately. | ||
| + | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
| + | [[Direct method]]. Cost allocation method that allocates each support department's costs to operating departments only. | ||
==Related concepts== | ==Related concepts== | ||
| Line 12: | Line 14: | ||
*[[Principles of Accounting]]. | *[[Principles of Accounting]]. | ||
| − | [[Category: International Accounting]][[Category: Articles]] | + | [[Category: International Accounting]][[Category: Articles]][[Category: Accounting]] |
Revision as of 12:17, 10 July 2020
Direct method is one of two methods of preparing the cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Direct method. One of two methods of preparing the cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition), Direct method. Cost allocation method that allocates each support department's costs to operating departments only.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
