Direct method, Indirect method & how they relate to Cash Generated from Operations (CGO)

CFA Level II FRA
#1

Looking back at Level 1 FSA, it appears the Direct method deals with the Cash accounting method, while the Indirect Method relates to the Accrual accounting method.

Am I wrong?

#2

I think that you are.

Both make adjustments for accrual accounting. And pretty much the same adjustments.

1 Like
#3

Thank you for the clarification.