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Direct Method
A cash flow statement preparation approach that lists major categories of gross cash receipts and payments.
Depreciation Expense
The methodical distribution of the expense of a physical asset over its estimated life span.
Prepaid Expenses
Payments made for goods or services to be received in the future; recognized as assets on the balance sheet until the benefit of the goods or services is realized.
Accrued Expenses
Expenses that have been incurred but not yet paid or recorded in the company's financial statements.
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