Examlex
When the situation in which a problem occurs is changed so that the problem no longer exists, it is
Direct Method
One of two methods of preparing the net cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately.
Indirect Method
One of two methods of preparing the net cash flow from the operating activities section of the statement of cash flows. Involves converting the accrual basis net income figure from the income statement to the net cash flows from operating activities.
Operating Activities
Those activities most closely related to conducting the business for which the enterprise was established. Activities such as selling merchandise and services to customers and paying salaries and other expenses needed to continue earning the operating revenue are classified as operating activities.
Net Cash Flow
The difference between a company's cash inflows and outflows in a given period, indicating its ability to generate cash.
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