direct approachThe preferred method for preparing the statement of cash flows; operating cash flows are presented according to their direct source (e.g., cash received from customers)
financing activitiesA cash flow category; including receipts from stock issues, bonds, notes and loans, -- and payments for loan repayment, acquisitions of treasury stock, and dividend distributions
indirect approachAn alternative method for preparing the statement of cash flows; operating cash flows are presented as a reconciliation of income to cash from operating activities
investing activitiesA cash flow category; including receipts from disposal of investments and long-term assets -- and payments to acquire long-term assets and investments
operating activitiesA cash flow category; generally related to transactions that enter into the determination of income -- items that are not investing or financing
statement of cash flowsA financial statement that summarizes the cash flows relating to operating, investing, financing, and noncash investing/financing activities of an entity
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