When should the indirect method be used?
People have studied the ocean since ancient times , because the ocean provides food and serves as a route for trade and travel.
in cash flow statement using indirect method actual net profit from income statement is adjusted for non cash items to arrive at actual cash from operating activities.
The most common method use to detect planets involve measuring the change in light intensity of a star. By observing and measuring the light output of a star over a period of …time, regular, periodic fluctuations in the intensity of the light output can indicate a planet orbiting the star. As the planet pass in front of the start, the measurable light is less.
Think your argument may be faulty
Should a gain on the sale of land be added to net income in calculating net cash flow from operating activities using the indirect method?
It should be deducted from operating activities and should be included in investing activities as dealing with assets is a part of investing activities.
Under indirect method net income from normalincome statement is adjusted for non cash items to arrive at cashflow from operating activities. As salaries and purchases arealrea…dy accounted for in normal income that;s why it is notreported otherwise it will count twice.
The reason why is we can't tunnel to the center so we have to use the indirect methods to study the interior.
Indirect measurement is a technique that uses proportions to find ameasurement when direct measurement is not possible.
In Women's Suffrage
In Business Accounting and Bookkeeping
Why is depreciation added to net income in the statement of cash flows when the indirect method is used?
Depreciation is NON CASH Expense. By adding itback to Net income we get Income which is purely in Cash.