An Approach to Analyzing Various Businesses Relative to One Another

question 85

Short Answer

An approach to analyzing various businesses relative to one another is known as a _____.

---

Definitions:

Net Income

The net income a company earns following the deduction of all expenses and taxes from its total revenues.

Indirect Method

A technique used in cash flow statements to reconcile net income with cash flow from operating activities, by adjusting non-cash transactions and changes in working capital.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life in a systematic manner.