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Statement Of Cash Flows Direct Method
In this case, there are no accrued taxes so the income tax expense is the same as cash paid for income taxes. If you have to do an additional reconciliation, why is it called the direct method.
Business events are recorded with income statement and balance sheet accounts like sales, materials, and inventory. It’s laborious for most companies to compile the information with this method. The cash flow statement presented using the direct method is easy to read because it lists all of the m […]