Intermediate Accounting 5 The Statement of Cash Flows Direct ethod This method reports directly the major classes of operating cash receipts and payments of an entity during a period Accrual-basis revenues and expenses must be converted to equivalent cash receipts and payments The amount of cash actually collected or paid is determinedDirect Method Intermediate Accounting 5 The Statement of Cash Flows ➢ This method reports directly the major classes of operating cash receipts and payments of an entity during a period. ➢ Accrual-basis revenues and expenses must be converted to equivalent cash receipts and payments. ➢ The amount of cash actually collected or paid is determined