The Separation Between Firm Ownership and Management Creates A(n) __________

question 91

Multiple Choice

The separation between firm ownership and management creates a(n) __________ relationship.

• A) governance
• B) control
• C) agency
• D) dependent

---

Definitions:

Indirect Method

In accounting, it's a way to report cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and investments, a component of a company's cash flow statement.

Indirect Method

A technique for preparing the cash flow statement where adjustments are made to net income to convert it from an accrual basis to a cash basis.