Instructions: Explain/Define the Following Terms

question 41

Short Answer

Instructions: Explain/Define the following terms.
Truman Doctrine

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Definitions:

Operating Activities

Activities that relate directly to the primary business operations, including revenues and expenses, cash flows, and transactions.

Direct Method

A cash flow statement preparation approach that lists major payments and receipts of cash from operational activities directly.

Indirect Method

An approach used in cash flow statements where net income is adjusted for non-cash transactions, deferred revenues, and expenses to calculate cash flow from operating activities.

Indirect Approach

A method used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.