Direct Method: Complexities of Cash Flow Method of Accounting
2024-07-11 08:01Direct Method: The direct method is a method of creating the cash flow statement in which actual cash flow information from the company's operations segment is used, instead of accrual accounting ...
Direct Method - Overview, How To Use, Accrual Method
Summary. The direct method is one of two different accounting treatments used to prepare the cash flow statement. It requires the use of the actual cash inflows and outflows of the organization. The actual inflows received and the outflows paid for, and not accrued, are added and subtracted in the cash flow statement using the direct method.