Using the ________ method of projecting cash flow,adjustments are made to net income based on the fact that cash may not actually be received or disbursed.

Question

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The indirect method of projecting cash flow involves adjusting net income by accounting for non-cash items such as depreciation, as well as changes in current assets and liabilities that may not result in actual cash flows. This method is commonly used in financial statement analysis to reconcile net income with cash flow. The other options, break-even, direct and pro forma methods, do not involve the same level of adjustment of net income for non-cash items and changes in current assets and liabilities, as the indirect method does.

Using the ________ Method of Projecting Cash Flow,adjustments Are Made