direct method

Examples of direct method in the following topics:

• Preparation of the Statement of Cash Flows: Direct Method

  • There is an indirect and a direct method for calculating cash flows from operating activities.
  • The following is an example of using the direct method for calculating cash flows.
  • To employ this direct method, use the following equation:
  • The two methods to calculate cash flows are the direct method and the indirect method
  • Explain the direct method for preparing the statement of cash flows

• 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.
  • As the name implies, the direct method of reporting cash flows identifies clear circumstances of cash inflow or outflow.
  • The indirect method is quite a bit more involved than the direct method, as it incorporates valuation changes in non-cash assets as well.
  • Differentiate between the direct and indirect methods of cash flow accounting, with a particular focus on the more popular indirect method

• Valuing Notes Receivable

  • Companies have two methods available to them for measuring the net value of accounts receivable: the allowance method and the direct write-off method.
  • Companies have two methods available to them for measuring the net value of accounts receivable--the allowance method and the direct write-off method.
  • The first method is the allowance method, which establishes a contra-asset account, allowance for doubtful accounts, or bad debt provision, that has the effect of reducing the balance for accounts receivable.
  • The second method is the direct write off method.
  • Differentiate between the allowance method and the write off method for valuing notes receivable

• Direct Counting

  • Direct counting methods are used to determine bacterial concentration without the need for advanced equipment.
  • Direct counting methods include microscopic counts using a hemocytometer or a counting chamber.
  • Additionally, plating is the slowest method because most microorganisms need at least 12 hours to form visible colonies.
  • These methods of direct counting do not require sophisticated instrumentation, so they can easily be performed in most laboratories.

• Valuing Accounts Receivable

  • Companies use two methods to account for bad debts: the direct write-off method and the allowance method.
  • For tax purposes, companies must use the direct write-off method, under which bad debts are recognized only after the company is certain the debt will not be paid.
  • Under the allowance method, an adjustment is made at the end of each accounting period to estimate bad debts based on the business activity from that accounting period.
  • Differentiate between the direct write-off method and the allowance method of accounts receivable valuation

• Direction Fields and Euler's Method

  • Direction fields and Euler's method are ways of visualizing and approximating the solutions to differential equations.
  • Direction fields, also known as slope fields, are graphical representations of the solution to a first order differential equation.
  • Illustration of the Euler method.
  • Describe application of direction fields and Euler's method to approximate the solutions to differential equations

• 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 are two different methods that can be used to report the cash flows of operating activities.
  • 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.
  • Explain how to use the indirect method to calculate cash flow

• Write-Offs

  • Companies use two methods for handling uncollectible accounts: the allowance method and the direct write-off method.
  • Companies use two methods for handling uncollectible accounts: the direct write-off method and the allowance method.
  • The direct write-off method is simpler than the allowance method in that it allows for one simple entry to reduce accounts receivable to its net realizable value.
  • Note that the allowance method is the required method for federal income tax purposes (GAAP).
  • Explain how to write off an uncollectible account using both the direct write-off and the allowance method.

• Direct Lobbying

  • Direct lobbying refers to methods used by lobbyists to influence legislative bodies through direct communication with members of the legislative body, or with a government official who participates in formulating legislation .
  • A common use of direct lobbying is to persuade the general public about a ballot proposal.
  • Communications regarding a ballot measure are also considered direct lobbying.
  • Direct lobbying is different from grassroots lobbying, a process that uses direct communication with the general public, which, in turn, contacts and influences the government.
  • Meta-analysis reveals that direct lobbying is often used alongside grassroots lobbying.

• Mapping Protein-Protein Interactions

  • This experimental approach measures direct physical interaction between proteins and is called a binary method .
  • Peptides are identified using mass spectrometry methods.
  • This method allows for the identification and quantification of direct binding partners and secondary interacting proteins, and assigns them into protein networks.
  • This experimental approach measures physical interactions between groups of proteins without distinguishing whether they are direct or indirect and is termed co-complex method.
  • Principle of the bait and prey method for the study of protein-protein interaction.