Direct Vs. Indirect Cash Flow Method. A company reports revenues and expenses on its income statement. Since most companies use accrual accounting, the income statement reveals little about cash ...

The cash flow statement describes how cash enters and leaves a company for the period. The statement contains sections for operating, investing and financing activities. The direct method pertains ...

By reviewing cash flow statements regularly, business owners can better manage finances, anticipate cash shortages and make informed decisions for growth. We’ll explain more about cash flow statements ...