what are the 3 methods of accounting 
the three methods of accounting are 1 the cash basis accounting method 2 the accrual accounting method and 3 the modified cash basis accounting method the cash basis accounting method records transactions as money comes in and out the accrual accounting method records transactions as they are incurred whether or not money has come in or gone out the modified cash basis method is a blend of the two the bottom linewhile the direct method of cash flow accounting is more time consuming it provides more detail about the operating cash flow account which helps analysts and business managers get a more holistic understanding of the cash cycle and profitability 