Respuesta :
Direct method is the method for preparing the statement of cash flows which presents a more transparent operating section.
What is the direct cash flow method?
One of the two ways used to create a cash flow statement is the direct method. The real cash inflows and outflows from the business' operations are used in this accounting treatment. The income statement method is another name for the direct method.
What is the indirect cash flow method?
The indirect cash flow approach adjusts net income with disparities from non-cash transactions to determine cash flow. It begins with a company's net income and then lists all cash flows—both received and paid—for different types of transactions.
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