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Does the indirect method of accounting deal with not only cash even though it is a cash flow statement?


Why do things like accounts payable and change in prepaid rent, inventory, and receivables show up in the statement of cash flows under the indirect method? Aren't only quantities involving a direct transfer of cash supposed to be listed? Aren't cash flow statements only supposed to list cold, hard, cash transactions, or can they include accrued items as well?

538 day(s) ago

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alohachris 		That's the direct method and it looks much different. The indirect method is used most often because it's easier to prepare.


Posted 538 days ago

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Question Title Does the indirect method of accounting deal with not only cash even though it is a cash flow statement?
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