indirect method

Examples of indirect method in the following topics:

• Direct and Indirect Measurement

  • Cash flow statements can be measured via the direct method and the indirect method to determine overall liquidity.
  • When understanding how an organization creates a statement of cash flows, it's important to know there are two established methods: the direct method and the indirect method.
  • The indirect method is quite a bit more involved than the direct method, as it incorporates valuation changes in non-cash assets as well.
  • Financial items in the indirect method include dividends, stock repurchases, and changes in overall debt.
  • Differentiate between the direct and indirect methods of cash flow accounting, with a particular focus on the more popular indirect method

• Preparation of the Statement of Cash Flows: Indirect Method

  • The indirect method starts with net-income while adjusting for non-cash transactions and from all cash-based transactions.
  • There is the direct method and the indirect method.
  • Also, in the indirect method cash paid for taxes and cash paid for interest must be disclosed.
  • The indirect method adjusts net income (rather than adjusting individual items in the income statement).
  • Explain how to use the indirect method to calculate cash flow

• Preparation of the Statement of Cash Flows: Direct Method

  • There is an indirect and a direct method for calculating cash flows from operating activities.
  • There are two different methods that can be used to report the cash flows of operating activities: the direct method and the indirect method .
  • In the indirect (addback) method for calculating cash flows, the accrual basis net income is established first.
  • The indirect method adjusts net income (rather than adjusting individual items in the income statement) for the following phenomena: changes in current assets (other than cash), changes in current liabilities, and items that were included in net income but did not affect cash.
  • The two methods to calculate cash flows are the direct method and the indirect method

• Cash Flow from Operations

  • Cash flows from operating activities can be calculated and disclosed on the cash flow statement using the direct or indirect method.
  • The direct method shows the cash inflows and outflows affecting all current asset and liability accounts, which largely make up most of the current operations of the entity.
  • Those preparers that use the direct method must also provide operating cash flows under the indirect method.
  • The indirect method is a reconciliation of the period's net income to arrive at cash flows from operations; changes in current asset and liability accounts are added or subtracted from net income based on whether the change increased or decreased cash.
  • The indirect method must be disclosed in the cash flow statement to comply with U.S. accounting standards, or GAAP.

• Measurements of Microbial Mass

  • Changes in the number of bacteria can be calculated by a variety of methods that focus on microbial mass.
  • The measurement of an exponential bacterial growth curve in a batch culture was traditionally a part of the training of all microbiologists; the basic means requires bacterial enumeration (cell counting) by direct and individual (microscopic, flow cytometry), direct and bulk (biomass), indirect and individual (colony counting), or indirect and bulk (most probable number, turbidity , nutrient uptake) methods.
  • There are several methods for measuring cell mass, including the gravimeter method which uses ordinary balances to weigh a sample (dry weight/ml) after the water has been removed.
  • An indirect method for calculating cell mass is turbidimetry.
  • Additionally, plating is the slowest method of all: most microorganisms need at least 12 hours to form visible colonies.

• Mobilizing Public Opinion

  • The Court defined this "direct" method of lobbying as "representations made directly to the Congress, its members, or its committees".
  • It contrasted this with indirect lobbying, which it defined as efforts to influence Congress indirectly by trying to change public opinion.
  • As an indirect tactic, lobbyists often try to manipulate public opinion which, in turn, can sometimes exert pressure on congresspersons, who must frequently appeal to that public during electoral campaigns.
  • One method for exerting this indirect pressure is the use of mass media.

• Units of Measurement for Microbes

  • Measuring microbes presents challenges because they are very small, requiring indirect measures of microbes to understand them better.
  • The measurement of an exponential microbial growth curve in batch culture was traditionally a part of the training of all microbiologists; The basic means requires bacterial enumeration (cell counting) by direct and individual (microscopic, flow cytometry), direct and bulk (biomass), indirect and individual (colony counting), or indirect and bulk (most probable number, turbidity, nutrient uptake) methods .

• Fluorescent Antibodies

  • Fluorescent labeling is another method of demonstrating the complexity of antigens and antibodies.
  • The basic methods utilizing fluorescent antibodies include direct, inhibition, and indirect immunofluorescent assay.
  • Indirect immunofluorescence assay is based on the ability of antibodies to react with antigens as well as act as antigens and react with anti-antibody (anti-immunoglobulin).
  • The methods described are mostly performed on glass slides with patient serum or tissue sections.
  • This method is known as flow cytometry and requires a flow cell sorter rather than a fluorescent microscope .

• Calculating GDP

  • GDP = National Income (NY) + Indirect Business Taxes (IBT) + Capital Consumption Allowance and Depreciation (CCA) + Net Factor Payments to the rest of the world (NFP)
  • The output approach is also called "net product" or "value added" method.
  • This method consists of three stages:
  • GDP at factor cost plus indirect taxes less subsidies on products is GDP at producer price.
  • The metric is one method of understanding economic growth within a country's borders.

• Portals of Exit

  • Transmission can also be indirect, via another organism.
  • Indirect transmission could involve zoonoses or, more typically, larger pathogens like macroparasites with more complex life cycles.
  • The first is horizontal disease transmission – from one individual to another in the same generation by either direct contact, or indirect contact air, such as via a cough or sneeze.
  • Infectious agents are generally specialized for a particular method of transmission.
  • More common are the indirect routes: foodstuffs or water become contaminated and the people who eat and drink them become infected.