Indirect Method is a technique for producing a statement of cash flows a company possibly will use throughout any specified reporting episode. The indirect methods utilize accumulation accounting information to current the cash flows from the operations part of the cash flow statement.
Cash Flow Statement Example – Direct and Indirect Method: Unlike the major financial statements, cash flow statement is not prepared from the adjusted trial balance. The information to prepare this statement usually comes from three sources: Comparative balance sheets provide the amount of the
Reconciliation Method Definition: A method of computing the cash provided by operating activities that starts with net income and adjusts it to a cash basis. It is also known as the indirect method. Recommended Books ! Or Download E accounting book in MS-word format