Examlex
Put the following in order from simplest to most complex.
Net Income
The total profit or loss of a company after all revenues and expenses have been accounted for, also known as net earnings.
Indirect Method
A method for preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to calculate net cash from operating activities.
Financing Activities
Transactions and events that affect the long-term liabilities and equity of an entity, typically involving the inflow of cash from investors or banks.
Indirect Method
A technique used in the statement of cash flows to adjust net income for the effects of non-cash transactions and changes in working capital to determine cash flow from operating activities.
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