The indirect method of computing operating cash flows effectively converts accrual accounting income to cash basis income as its starting point.

Name: The indirect method of computing operating cash flows effectively converts accrual accounting income to cash basis income as its starting point.
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The indirect method of computing operating cash flows starts with the net income figure from the accrual accounting income statement and then makes adjustments to convert it to cash basis income.

The Indirect Method of Computing Operating Cash Flows Effectively Converts