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The strength of a linear relationship between two numerical variables may be illustrated by a line graph, where the closer the points form a line, the stronger the linear relationship between the two variables.
Fully Depreciated Equipment
An asset that has reached the end of its useful life for accounting purposes, having its cost fully allocated to depreciation expense.
Statement of Cash Flows
A finance report summarizing every cash inflow from ongoing business operations and external investments, and all cash outflows for corporate activities and investment purposes, within a set period.
Operating Activities
The primary day-to-day activities of a business involved in producing and selling its goods or services, reflected in the cash flow statement.
Indirect Method
A method used in cash flow statement preparation that adjusts net income for non-cash transactions and changes in working capital accounts to arrive at net cash flow from operating activities.
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