Discuss the Correlations That Have Been Found Between Net Income,net

question 88

Essay

Discuss the correlations that have been found between net income,net income plus or minus Type 1 adjustments (i.e.,adjustments to net income for revenues,expenses,gains,and losses that are recognized in income and are associated with changes in noncurrent assets,noncurrent liabilities,and shareholders' equity,but do not affect cash by the same amounts for the period),and cash flow from operations.
A. Daley, "Evidence on the Relationships Between Earnings and Various Measures of Cash Flow," Accounting Review (October, 1986)revealed (1)a high correlation between net income and net income plus or minus Type 1 adjustments, and (2)a low correlation between net income and cash flow from operations, and (3)a low correlation between cash flow from operations and net income plus or minus Type 1 adjustments over time

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Definitions:

Queen Liliuokalani

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The process by which one territory or state is taken over by another, often involving the incorporation of the annexed territory into the larger political entity.

New Imperialism

A period in the late 19th and early 20th centuries marked by a significant expansion of Western European powers and the United States into Asia, Africa, and the Pacific, often characterized by the acquisition of territories and the exploitation of resources.

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Countries that have established colonies overseas to exploit resources, spread their culture, and exert political control.