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Operating Activities
Day-to-day actions that are involved in running a company, such as selling products, managing expenses, and paying employees, which are reflected in the cash flow statement.
Direct Method
A cash flow statement preparation approach that lists major categories of gross cash receipts and payments, offering a more straightforward view of a company’s cash flow from operational activities.
Indirect Method
A way to report cash flows from operating activities by starting with net income and adjusting for non-cash transactions.
Common Shares
Shares of ownership in a corporation that grant holders voting rights and a residual claim on the corporation's assets and earnings.
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