Outcome Evaluation and Data Measurements Are Related

question 36

True/False

Outcome evaluation and data measurements are related. Evaluation of outcomes is facilitated when appropriate outcomes and associated indicators are chosen, but if the outcome is not clearly defined, then the measurements and subsequent evaluation will be flawed.

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Definitions:

Indirect Method

A method for preparing the cash flow statement where net income is adjusted for non-cash transactions, deferred income, and changes in working capital to compute net cash from operating activities.

Statement Of Cash Flows

A financial report summarizing the amount of cash and cash equivalents entering and leaving a company.

Book Value

The net value of a company's assets as recorded on its balance sheet, minus its liabilities and intangible assets, such as goodwill.

Indirect Method

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