Examlex
In the studies of Long and Moran on the effects of viewing an unambiguous figure:
Indirect Method
An approach used in cash flow statement preparation, adjusting net income for non-cash transactions, deferrals, and accruals to calculate operating cash flow.
Accounts Receivable
Represents money owed to a company by its customers for goods or services provided on credit.
Sales
Revenue earned from the exchange of goods or services during a specific period.
Direct Approach
A method used in cash flow statements where cash receipts and payments are reported directly to calculate net cash from operating activities.
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