preetham
asked
what are the indirect cash flow method ?
0
0
Answer Now
Comment
Report
3
Answers
narahari
answered
Under the indirect method of presenting the statement of cash flows, the presentation of this statement begins with net income or loss, with subsequent additions to or deductions from that amount for non-cash revenue and expense items, resulting in net income provided by operating activities.
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below –
For any questions Request A Call Back
veeru
answered
The statement of cash flows is one of the components of a company's set of financial statements, and is used to reveal the sources and uses of cash by a business. It presents information about cash generated from operations and the effects of various changes in the balance sheet on a company's cash position.
Under the indirect method of presenting the statement of cash flows, the presentation of this statement begins with net income or loss, with subsequent additions to or deductions from that amount for non-cash revenue and expense items, resulting in net income provided by operating activities.
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Jitendra Suthar
answered
Hiiii friend....
It is a method for creating a statement of cash flows of a company may use during any given reporting period.
The Indirect Method uses accrual accounting information to present the cash flows from operations section of cash flow statement.
Under both the direct and Indirect method the remaining two sections of the cash flow statement i.e. Investment and financing activities are similar.
Regards,
