Difference between revisions of "Indirect method"

From CNM Wiki
Jump to: navigation, search
(Created page with "Indirect method is one of two methods of preparing the net cash flow from the operating activities section of the statement of cash flows. Involves converting the accrua...")
(No difference)

Revision as of 11:04, 20 December 2018

Indirect method is one of two methods of preparing the net cash flow from the operating activities section of the statement of cash flows. Involves converting the accrual basis net income figure from the income statement to the net cash flows from operating activities.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Indirect method. One of two methods of preparing the net cash flow from the operating activities section of the statement of cash flows. Involves converting the accrual basis net income figure from the income statement to the net cash flows from operating activities.

Related concepts

Related coursework