the cash flows from operating activities section of an indirect method statement of cash flows begins with net income or loss is true.
The indirect method of cash flow uses accrual accounting, which is when you record revenue and expenses at the time a transaction occurs, rather than when you actually lose or receive the money.
Direct cash flow identifies changes in cash receipts and payments reported in a cash flow statement. Indirect cash flow takes the net income and adds or subtracts changes in non-cash transactions to determine an implied cash flow.
A common and simple method for determining whether a band gap is direct or indirect uses absorption spectroscopy. By plotting certain powers of the absorption coefficient against photon energy, one can normally tell both what value the band gap is, and whether or not it is direct.
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