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This question is about list of skills.
Direct vs. indirect cash flow
The difference between direct and indirect cash flow is that direct cash flow is an accounting method that develops a detailed cash flow statement exhibiting the changes related to a company's cash over a specific accounting period.
In contrast, indirect cash flow is an accounting method that uses a financial statement to show how much money an organization spends in an accounting period.
The direct cash flow method lists every financial transaction on a company's cash flow statement. It enables organizations to track their financial status and, as a result, make informed financial decisions. This method lets an organization subtract cash payments, including items like payments to suppliers or employees.
The indirect cash flow method sees an organization's net revenue and subtracts differences from non-cash transactions. These are usually developments or changes regarding the organization's present liabilities, assets, and other financial obligations or gains from non-present assets on the organization's balance sheet.
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