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 flowing into ...

The direct method of preparing a cash flow statement differs from the indirect method only in the operations section. The investments and financing sections are identical.

The transition from the indirect method to the direct method is familiar to financial executives at public colleges and universities, which underwent a similar change following the issuance in 1999 of ...