The direct method is one way for a company to prepare its cash flow statement for presentation to shareholders. Both U.S. generally accepted accounting principles (GAAP) and International ...

The direct method uses gross cash receipts and gross cash payments to prepare cash flow statements. This includes money paid to suppliers, receipts from customers, interest and dividends received, ...

Direct vs. indirect methods of preparing a cash flow statement: The direct method focuses on going through individual transactions and compiling income and expenses.

A cash flow statement tells you how much cash is entering and leaving your business in a certain time period. Learn how cash flow statements work and why they're important.

Compare India's Accounting Standard 3 (AS 3) and Ind AS 7 on cash flow statements. Learn about their objectives, classification methods, and key differences in reporting ...

Key Takeaways Operating cash flow (OCF) is the first section of a cash flow statement, showing cash from operating activities. OCF is calculated using an indirect or direct method.