Examlex
Imagine that you overhear a couple arguing over whether their child's extroverted personality is due to her early experiences with multiple caregivers or is an inherited personality trait. What can you tell this couple about the relative contributions of experience and genetics to extroversion?
Indirect Method
A way of reporting cash flows from operating activities in the statement of cash flows by adjusting net income for changes in balance sheet accounts.
Operating Activities
Activities that relate directly to the running of a business for profit, including production, sales, and distribution.
Net Income
The amount of profit left after all operating expenses, taxes, and interest are deducted from total revenue.
Indirect Method
In cash flow statement preparation, refers to starting with net income and adjusting for non-cash transactions to calculate operating cash flow.
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