(Appendix) Under the direct method, each line of the income statement is converted to cash paid or received.

Name: (Appendix) Under the direct method, each line of the income statement is converted to cash paid or received.
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In the direct method, each line of the income statement is converted to cash paid or received. This is in contrast to the indirect method, where adjustments are made to net income to arrive at cash flow from operating activities.

(Appendix) Under the Direct Method, Each Line of the Income