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The normal ECG cycle consists of the following waves:
Direct Method
In accounting, the direct method is a way of reporting cash flows from operating activities by listing major categories of gross cash receipts and payments.
Income Taxes Payable
The amount of federal, state, or local taxes that a company is obligated to pay to the tax authorities, based on its earnings, within the current accounting period.
Income Tax Expense
The cost incurred by businesses or individuals due to income taxes.
Investing Activities
Transactions related to the purchase or sale of long-term assets and investments, which are part of the cash flow statement indicating how cash is invested.
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