Examlex
Which of the following statements is the BEST summary of evolution?
Indirect Method
A method used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to convert it from accrual to cash basis.
Net Income
The total profit of a company after subtracting all expenses, taxes, and costs from total revenue.
Statement Of Cash Flows
A financial statement that highlights the major activities that impact cash flows and, hence, affect the overall cash balance.
Operating Activities
These involve the primary day-to-day activities of a business, such as sales and the purchase of goods or services, which are reflected in its cash flow.
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