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What does Indirect Method mean?

帮考网校2020-10-13 14:32:32
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The indirect method is a method of preparing the cash flow statement, which involves starting with the net income figure from the income statement and adjusting it for non-cash transactions and changes in working capital to arrive at the cash flow from operating activities. It is called indirect because it does not directly track the movement of cash in and out of a business, but rather adjusts the net income figure to arrive at the cash flow.
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