What Is the KISS Rule

question 137

Short Answer

What is the KISS rule?

---

Definitions:

Financing Activities

Transactions and events where cash is raised from or repaid to investors, such as issuing equity or debt.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with predetermined dividend payments.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported.