Asked by Yahya Jabado on Jun 19, 2024
Verified
Direct Approach
A method used in accounting that focuses on the immediate recognition of revenues and expenses when they are incurred, without adjusting for accruals.
Indirect Approach
A method used in the preparation of the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.
Investing Activities
Financial transactions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
- Discriminate among cash movements related to operating, investing, and financing functions.
- Utilize direct and indirect strategies for reporting operating activities' cash flows.
- Investigate the effects of asset transactions on investing functions.
Verified Answer
LP
Learning Objectives
- Discriminate among cash movements related to operating, investing, and financing functions.
- Utilize direct and indirect strategies for reporting operating activities' cash flows.
- Investigate the effects of asset transactions on investing functions.