Cash flow from operations over a period of time can be determined by both direct and indirect methods.
The direct cash flow method determines the changes in cash receipts and payments that are reflected in the cash flow from the operations section.
The indirect method takes the net income received for the period and adds or subtracts changes in the asset and liability accounts to determine the implied cash flow.
The direct method of the cash flow statement provides more detailed information about the operating cash flow accounts, although it is time consuming.
Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis.
The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year.
An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future.