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Explain the difference between certainty, risk, and uncertainty.
Operating Activities
Activities directly related to the operation of the business, including production, sales, and delivery of the company's product.
Net Income
The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; often referred to as the "bottom line."
Indirect Method
A method used in cash flow statement preparation that adjusts net income for non-cash transactions, deferrals, and accruals.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded against an asset since it was put into use, reducing its book value.
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