Examlex
Describe three communication methods and give examples of each.
Direct Method
A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed directly.
Operating Activities
Transactions and events related to the principal revenue-producing activities of an entity, reflected in its cash inflows and outflows.
Indirect Method
A way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for changes in non-cash items and operating capital.
Quality of Earnings
An assessment of the degree to which a company's earnings are derived from sustainable, core business activities.
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