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While viewing a picture of a three-week-old embryo, Dr. Payne points to something and says, "This structure will soon become a tube from which the brain and spinal cord will develop." What is Dr. Payne pointing at?
Indirect Method
A method for calculating cash flows in which net income is adjusted for changes in balance sheet accounts to reflect cash transactions.
Cash Equivalent
Short-term, highly liquid investments that are easily convertible to known amounts of cash and very close to their maturity.
Accruals
Accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transaction occurs.
Indirect Method
A method used to prepare the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.
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