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Develop Your Own Explanation/theory as to Why Organizations Today Find

question 56

Essay

Develop your own explanation/theory as to why organizations today find collaboration as important as competition, and why they have a tendency to take on similar characteristics. Would not collaboration be enhanced just as easily with organizations that had different characteristics?


Definitions:

Direct Method

A method of reporting the cash flows from operating activities as the difference between the operating cash receipts and the operating cash payments.

Indirect Method

A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Direct Method

The Direct Method in accounting refers to a way of reporting cash flows from operating activities by directly listing major classes of gross cash receipts and payments.

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