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The Barnum effect occurs when:
Indirect Method
A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to compute cash flow from operating activities.
Operating Activities
Activities that relate to the core business operations of a company, including production, sales, and day-to-day administration.
Free Cash Flow
The amount of cash generated by a company after accounting for capital expenditures, indicating the company's ability to expand, pay dividends, or reduce debt.
Net Income
Net income is the total profit of a company after all expenses and taxes have been deducted from revenues.
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