Examlex
Losing sight of this step is entirely possible when a statistical analysis program issues a great many correlations often in a layout that is confusing to first-time data analysts:
Indirect Method
A cash flow statement approach that adjusts net income for changes in balance sheet accounts to identify cash flow from operating activities.
Operating Activities
Activities that involve the core business operations of a company, such as selling goods and services.
Depreciation Expense
The allocated portion of the cost of a tangible asset that is expensed in each accounting period during its useful life, reflecting wear and tear, deterioration, or obsolescence.
Indirect Method
A method of preparing the cash flow statement in which net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.
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