Examlex
The Press-Enterprise test is used by judges to
Direct Method
A technique used in cash flow statements to present cash activities directly related to operating activities.
Investing Adjustments
Adjustments made in the accounting records related to investments in securities or fixed assets to reflect their fair values as of the financial statement date.
Indirect Method
An accounting practice used to prepare the cash flow statement, where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.
Net Income
The total revenue minus total expenses, representing the company's profit.
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