What is the difference between Direct Method and Indirect Method of Cash Flow Statement?



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Hello Sir,

Can you please explain the difference between Direct Method and Indirect Method of Cash Flow Statement ? Which method is generally used in the industry ?

1 Answer(s)


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The most common way to make a cash flow statement is Indirect method - were the CF statement starts with net income and then cash adjustments are made. This is what is taught in the course.


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