Method of estimating and preparing the cash budgets and categorical cash flow statements for a specified period of time using the actual operational cash flows instead of the accrued accounting figures. Opposite of indirect estimate method.

Related information about direct estimate method:

1. What is direct estimate method? definition and meaning
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7. * Cash budget - (Business): Definition
   Direct estimate method A method of cash budgeting based on detailed estimates of cash receipts and cash disbursements category by category.
    
8. standard error of the estimate - Financial Definition
   Direct estimate method. A method of cash budgeting based on detailed estimates of cash receipts and cash disbursements category by category.