Explore BrainMass

Cash Flow Statement

What are the differences between the direct and indirect method of presenting a statement of cash flows?

Which method of presenting a statement of cash flows is the best? Why?

Solution Preview

The direct method of presenting a cash flow statement is where we do not start from Net Income and make necessary adjustments. In the direct method we put in actual cash collected and actual cash paid out in the operating section of the cash flow statement. There are no ...

Solution Summary

The solution goes into a great amount of detail in order to answer the question. The solution is very well written and easy to understand. The explanation can be very easily understood by anyone with a basic understanding of the concepts. Overall, an excellent response to the question being asked.