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 ...

Reviewed by Andy Smith Fact checked by David Rubin Key Takeaways Operating expenses are essential daily business costs, separate from production expenses.Reducing operating expenses can increase ...

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 ...