Direct and Indirect Cash Flows
All the business organization records the various in the comprehensive income statement. In most of the cases, many companies use the accrual concept, which makes income statement not to record the current flow of the cash in the firm. For this reason, the financial managers use the cash flow statement to locate the flow of cash in and out of the business.
This technique uses both the indirect and indirect of recording operational cash flow. In the former technique, one only use the operations that yield cash in the organization while indirect method involves converting accrued cash operations to the current cash in the firm
Give a clear description on direct and indirect cash flows.
