Asked by abdualrahman alhajri on May 26, 2024
Verified
Direct Approach
A method in financial accounting that involves reporting major classes of gross cash receipts and payments, providing a clear view of a company's cash flow.
Indirect Approach
A method for preparing the cash flow statement where net income is adjusted for non-cash transactions, deferred taxes, and changes in working capital.
Investing Activities
Financial transactions and events involving the purchase and sale of long-term assets and investments, as reported in the cash flow statement.
- Categorize the cash flows by their origins: operational, investment, or financial activities.
- Harness direct and indirect techniques for the exposition of cash flows from operating undertakings.
- Inspect how investing operations are altered by the purchase and sale of assets.
Verified Answer
NS
Learning Objectives
- Categorize the cash flows by their origins: operational, investment, or financial activities.
- Harness direct and indirect techniques for the exposition of cash flows from operating undertakings.
- Inspect how investing operations are altered by the purchase and sale of assets.