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Term for Identification: Shari'a

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Term for identification: Shari'a

Understand the principles and implications of changes in accounting principles and estimates.
Identify and explain the components and importance of comprehensive income.
Recognize prior period adjustments and their impact on financial statements.
Distinguish between extraordinary items and regular operational items in income statements.

Definitions:

Indirect Method

A cash flow statement presentation method that adjusts net income for changes in balance sheet accounts to calculate cash flow from operating activities.

Operating Activities

The day-to-day actions that a business undertakes to generate revenue, as reflected in the cash flow statement.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Indirect Method

A way of calculating cash flows for operating activities in the cash flow statement by adjusting net income for changes in non-cash items.

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