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Business
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| Number of pages / Number of words: |
2 / 504 |
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Instead of starting with a reported net income, the direct method analyzes the various types of operating activities and calculates the total cash flow created by each one. Before beginning the direct method, all accrual accounts must first be converted to a cash figure (Accounting Review, 2008).
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Marshall, Wayne W. McManus, Daniel F. Viele 2003, Accounting: What the Numbers Mean, 6e Chapter 9: The Income Statement and the Statement of Cash Flows, Retrieved on August 28, 2008
The Accounting Review July 2008 American Accounting Association, Ebscohost, Retrieved on August on 29, 2008
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