Examlex
Differentiate between voluntary and involuntary services with examples.
Indirect Method
A way of presenting the cash flow statement where net income is adjusted for non-cash transactions, depreciation, and changes in working capital to calculate cash flow from operating activities.
Operating Activities
Operating activities involve the day-to-day functions that are directly related to producing and delivering a company's goods and services, contributing to cash inflows and outflows during a period.
Statement of Cash Flows
A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.
Indirect Method
A technique used in cash flow statements to adjust net income for changes in non-cash operating activities to calculate net cash provided by operating activities.
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