Direct method of preparing a statement of cash flows

Assignment Help Financial Accounting

Reference no: EM131216997

Imagine you are the senior accountant at your organization and management is unsure of the difference between the indirect method and the direct method of preparing a statement of cash flows. Outline a brief memo to management differentiating between the direct method and indirect method. Advise management on which method the company should use to prepare the statement of cash flows. Provide at least two (2) specific examples on why the method you selected would be beneficial to the company.

Reference no: EM131216997

Questions Cloud

What are some of the routines in health care : Based on the scientific management theory, what are some of the routines in health care that seem to be inefficient? What examples of participative decision making exist in your workplace? Provide your rationale.

What is her recognized gain or loss : On April 18, 2015, Jane Juniper purchased 30 shares of Bryan Corp. stock for $210, and on September 29, 2015, she purchased 90 additional shares for $900. On November 28, 2015, she sold 48 shares, which could not be specifically identified, for $576 ..

Differences between hardware and software : What are some key features of and differences between hardware and software?

Summary of the teams discussion about ifrs versus gaap : What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments?

Direct method of preparing a statement of cash flows : Imagine you are the senior accountant at your organization and management is unsure of the difference between the indirect method and the direct method of preparing a statement of cash flows. Outline a brief memo to management differentiating between..

Discuss the accounting principles-identified company changed : From the e-Activity, discuss the accounting principles that the identified company changed, and explain the major reasons why the company changed accounting principles. Give your opinion on whether you believe the change in accounting principles was ..

Ethics-sustainability and social responsibility : UBS, a venerable Swiss banking institution with global business activities, experienced the significant implications that political factors can have on the bottom line.

How epidemiologic data supports significance of your issue : Post a summary of how the five population health determinants (access to health care, individual behavior, social environment, physical environment, and genetics) affect your selected health issue, and which determinants you think are most impactf..

Mpact the changes will have on company financial statements : Imagine you are the senior accountant at your organization, and management is not sure of the difference between a change in accounting estimate and a change in accounting principle. Briefly discuss the difference between a change in accounting estim..

User Account

All Pages