What is the difference between a cash flow statement made with the direct method or the indirect method. Which method do you prefer?
1. What is the difference between a cash flow statement made with the direct method or the indirect method. Which method do you prefer?
2. What are some of the main ratios used by businesses and why are ratios such a good tool for businesses to use?
3. Can someone tell me some basic liquidity ratios that companies like to use?
4. “Cash Flow” Briefly Discussion.
5. “The importance of forecasting cash flow” Briefly Discussion.
6. “Extraordinary Items” Briefly Discussion.
7.”Inderect Method” Briefly Discussion.
8. “Free Cash Flow” Briefly Discussion.
Answer preview
A cash flow statement can be made using either a direct or indirect method. These methods are used by different organizations depending on the company’s preference. The major difference between the two of them lies on the basis of cash flows from the operational activities. Under the direct method, cash flows include cash gotten from customers and cash paid to…
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