Which method provides a more detailed view of cash inflows and outflows from operations?

The direct method provides a more detailed view of cash inflows and outflows from operations because it lists specific cash receipts and cash payments. This method enhances transparency by showing exactly where cash is coming from and where it is being spent on operational activities. For instance, it would include cash collected from customers and cash paid to suppliers, making it easier to assess the company's cash flow situation during the reporting period.

By using the direct method, stakeholders can readily understand the cash-generating efficiency of the company's core operations, as it aligns closely with actual cash movements rather than accounting figures. This detailed breakdown can be particularly useful for management, investors, and analysts who want to evaluate operational performance.

In contrast, the indirect method adjusts net income for changes in non-cash items and working capital accounts, which can obscure the actual cash flow from operating activities. The accrual method focuses on recognizing revenues and expenses when they are incurred rather than when cash is received or paid, thus providing less detail about cash flow specifically. The cumulative method is not typically recognized as a standard approach for reporting cash flow information in financial statements, making the direct method the best choice for clarity and detail in reflecting cash movements.