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Accounts Receivable
Represents money owed to a company by its customers for goods or services delivered but not yet paid for.
Indirect Method
A way of calculating cash flows for operational activities by starting with net income and adjusting for non-cash transactions.
Net Income
The total profit of a company after all expenses, including taxes and interest, have been deducted from revenues.
Direct Method
A method of preparing the cash flow statement where actual cash flow information from the company’s operations segment is used directly.
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