Читать книгу Financial Accounting For Dummies - Maire Loughran - Страница 56

I show you a full-blown statement of cash flows prepared in accordance with generally accepted accounting principles (GAAP — see Chapter 4) in Chapter 11. In Figure 2-3, I give you a very abbreviated version of what a statement of cash flows looks like.

FIGURE 2-3: A very basic statement of cash flows.

There are two different ways to prepare a statement of cash flows: the direct method and the indirect method. I show you how to prepare a statement of cash flows using each method in Chapter 11. For now, here’s what to remember:

 The direct method reports cash receipts and disbursements.

 The indirect method starts with net income from the income statement and adjusts for noncash items reflecting on the income statement such as depreciation, which is allocating the cost of long-lived assets over their useful life. (See Chapter 12 for more info about depreciation.)