Examlex
The FCPA differentiates between:
Indirect Method
A cash flow statement presentation method that adjusts net income for changes in balance sheet accounts to calculate cash flow from operating activities.
Operating Activities
The day-to-day actions that a business undertakes to generate revenue, as reflected in the cash flow statement.
Statement of Cash Flows
A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.
Indirect Method
A way of calculating cash flows for operating activities in the cash flow statement by adjusting net income for changes in non-cash items.
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