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What is the difference between the direct method and indirect method?
Wiki User
∙ 8y ago
The main difference between the direct method and the indirect method involves the cash flows from operating activities. Under the direct method, the cash flows from operating activities will include the amounts for lines such as cash from customers and cash paid to suppliers. In contrast, the indirect method will show net income followed by the adjustments needed to convert the total net income to the cash amount from operating activities.
Wiki User
∙ 8y ago
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Which section is affected by the decision to use either the direct method or the indirect method to prepare the statement of cash flows?
The Operating Activities portion of the Statement of Cash Flows is affected by whether the direct or indirect method is used.
What does indirect mean?
Indirect means diverging from a straight line/path, not going straight to the point,the opposite of direct. It is used to mean a roundabout or covert method of action, in terms such as indirect taxes, indirect characterization, or indirect criticism.
When is the indirect method appropriate and what are the benefits of using it?
Indirect measurement is a technique that uses proportions to find a measurement when direct measurement is not possible.
Difference between direct cost and direct costing?
Direct cost is that cost which is directly identifiable with production volume while direct costing is the method or process through which direct cost is allocated to production.
Difference between Percentage of Completion method and Completed Contract method?
Difference between Percentage of Completion method and Completed Contract method?
What is the difference between the direct and indirect methods of determining generation time with a growth curve?
In the direct method, the cells are enumerated by determining colony-forming units on a Petri dish; in the indirect method, the cell numbers are approximated using a spectrophotometer.
What is difference between Grammar Translation Method- Direct Method and Audio Lingual Method?
differences between direct method and grammar translation?
Did suffragettes use direct or indirect method?
no
What is the similarities between a direct and indirect method of writing?
Both direct and indirect methods of writing aim to communicate effectively with the audience. They both involve conveying information in a clear and organized manner. The main difference lies in how the information is presented, with direct writing being more straightforward and to the point, while indirect writing may involve more storytelling or elaborate explanations.
Sixth grade math What is the definition of indirect and direct slope?
indirect is not a direct course direct slope is an improved method of a wave of lazer
Which printing method is direct printing?
Direct and indirect printing are from mono printing
In Cash flow statement what is direct method and indirect method?
Direct and indirect method of preparing cash flow statement is same with only one difference which is under indirect method 'Cash flow from operating activities' is prepared by adjusting the net profit amount for non cash items while 'Cash flow from financing activities' and 'Cash flow from investing activities' is prepared in same manner in both methods.
Which method of characterization is favored by the author in The Baroque Marble by E A Proulx direct or indirect?
indirect
Which method of characterization is favored by the author direct or indirect in The Baroque Marble by E A Proulx?
indirect
Methods of preparing statement of Cash flow?
Following are methods:1 - direct method2 - indirect method
Which section is affected by the decision to use either the direct method or the indirect method to prepare the statement of cash flows?
The Operating Activities portion of the Statement of Cash Flows is affected by whether the direct or indirect method is used.
What does indirect mean?
Indirect means diverging from a straight line/path, not going straight to the point,the opposite of direct. It is used to mean a roundabout or covert method of action, in terms such as indirect taxes, indirect characterization, or indirect criticism.
