Financial Planning Is a Dynamic Process

question 85

True/False

Financial planning is a dynamic process.

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Definitions:

Indirect Method

A financial accounting technique used in cash flow statements to adjust net income for the effects of non-cash transactions.

Current GAAP

Generally Accepted Accounting Principles as they are presently defined and practiced in the United States for financial reporting.

Direct Method

A way of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Activities

Operating activities involve the primary day-to-day functions of a business related to producing and selling its goods or services.