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fill in the blank question fill in the blank question. when the operating activity section of the statement of cash flows is prepared by adjusting each revenue and expense on the income statement from the accrual basis to the cash basis, the method is being used. (enter one word per blank.)

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namrata421

The Direct Method prepare operations activities section of the statement of cash flows is prepared by adjusting each revenue and expense on the income statement from the accrual basis to the cash basis, the method is being employed.

What Is the Direct Method?

One of two accounting treatments that are used to produce a cash flow statement is the direct approach. The statement of cash flows direct method does not convert the operational section from accrual accounting to a cash basis; rather, it uses real cash inflows and outflows from the company's activities.

With an example, what is the direct method?

The direct technique really lists the significant cash receipts and payments on the statement of cash flows. For example, monetary revenues are commonly mentioned from customers, commissions, and tenants.

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