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Differentiate between the direct method and indirect method of the statement of cash flows by discussing...

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Finance

Differentiate between the direct method and indirect method ofthe statement of cash flows by discussing the details of each

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There are two methods of converting net profit into net cash flows from operating activities Direct Method Under this method actual cash receipts for a period from operating revenues and actual cash payment for a period for operating expenses are arranged and presented in cash flow statement The difference between cash receipts and cash payment is the net cash flow from operating activities Under this method noncash items like depreciation amortization of intangible assets Preliminary expenses debenture discount etc are ignored from cash flow statement No adjustments are    See Answer
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Differentiate between the direct method and indirect method ofthe statement of cash flows by discussing the details of eachPlease type the answer

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