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Indirect Method
A way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions.
Accounts Receivable
Outstanding payments due to a company from its customers for delivered goods or services.
Accounts Payable
Liabilities or the amount of money owed by a company to its creditors and suppliers for goods and services purchased on credit.
Operating Activity
Transactions and events that affect net income, including all activities not categorized as investing or financing activities, typically related to the core operations of a business.