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Which of the following terms means excessive (deep) breathing?
Indirect Method
A financial reporting approach used in cash flow statements where net income is adjusted for non-cash transactions, depreciation, and changes in working capital to determine cash flow from operating activities.
Direct Method
A cash flow statement preparation approach that itemizes actual cash inflows and outflows from operating activities, as opposed to estimating them through indirect adjustments.
Expenses and Losses
Costs incurred in the operation of a business (expenses) and decreases in value not directly related to operations (losses).
Depreciation
Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.
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