Is Direct Method Cash Flow Reporting Better at Predicting Future Performance?

• 主要作者: Knowledge@SMU
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2007
• 主題: Accounting; Business; Finance and Financial Management
• 在線閱讀: https://ink.library.smu.edu.sg/ksmu/59; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1058&context=ksmu
• 機構: Singapore Management University

“Cash is king” goes the saying. Even companies enjoying brisk business have been known to fail because of unhealthy cash flows. The accounting profession is split over the benefits of the direct method (DM) versus the indirect method (IM) of preparing cash flow reports. In a study of over 100 US-bas...