Describe the Legal Values Constraint and How to Apply It

question 29

Essay

Describe the legal values constraint and how to apply it to best serve database users, including an example to support your answer.

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet items to arrive at cash flow from operating activities.

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

Comparative Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at two different points in time to analyze financial health and trends.

Net Income

The company's final financial gain once every expense, tax, and cost is subtracted from the gross income.