Posted: 15 Sep 2010 at 14:58 | IP Logged
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I am on the same Chapter as You. My 2 cents...
Direct Method:
You are reconciling Revenues & Expenses to Cash Method Not Net Income.
Indirect Method:
Reconciling Net Income to Cash. (Contains Bad Debt expense, Depreciation, etc of Non cash items that needs to be added back to Net Income.
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