sam boyer acc 291 week 8.1

sam boyer acc 291 week 8.1 - Running head DIRECT AND...

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Running head: DIRECT AND INDIRECT CASH FLOWS 1 Direct and Indirect Cash Flows Samatha Boyer Acc/291 02/08/2015 Tameka Johnson
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DIRECT AND INDIRECT CASH FLOWS 2 Direct and Indirect Cash Flows Throughout the course of this paper, I will be discussing what the differences are between a direct and indirect cash flows. I will then give an explanation on why the Financial Accounting Standards Board allows both direct and indirect cash flow methods to be used. As a finisher, I will give my opinion about which I prefer and why I prefer it. While both the direct and indirect methods of preparing a cash flow statement come to the same end result, the way of finding this end result is a little different. The direct method list everything that contains cash. The indirect method list matters that does not affect cash. (Weygandt, 2010) The direct method has three divisions that report cash earnings and cash disbursements. These sections are; “operating, investing, and financing activity.” (Weygandt, 2010) The operating activities includes record of earnings and disbursements of business operations. The
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