The cash flow statement describes how cash enters and leaves a company for the period. The statement contains sections for operating, investing and financing activities. The direct method pertains to ...

Michael Schmidt, CFA, is a staff member of FINRA's Dispute Resolution Board with 20+ years of experience in the financial market. Thomas J. Brock is a CFA and CPA with more than 20 years of experience ...

Companies that use accrual basis accounting can assemble their statement of cash flows in one of two ways, using either the direct method or the indirect method. The more commonly used indirect method ...