The Effect of an Event's Occurrence Is

question 21

Multiple Choice

The effect of an event's occurrence is:

• A) control
• B) impact
• C) risk
• D) opportunity

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Definitions:

Indirect Method

A way of calculating cash flow from operating activities by starting with net income and adjusting for changes in non-cash balance sheet items.

Financing Activities

Transactions that involve raising funds for the company, including issuing debt, issuing equity, and paying dividends.

Operating Activities

Business activities related to the day-to-day functions of a company, involving revenues and expenses.

Indirect Method

An approach used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to derive operating cash flows.