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The Control Pyramid Provides a Method for Implementing Controls in the Organization

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The control pyramid provides a method for implementing controls in the organization.


Definitions:

Indirect Method

The indirect method is a way to calculate cash flow from operations by adjusting net income for changes in non-cash accounts and non-operating items.

Journal

The initial record in which the effects of a transaction are recorded.

Free Cash Flow

The cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Financing Activities

Transactions that involve raising funds for the company through borrowing or issuing equity.

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