Computing Operating Cash Flows by Adjusting Accrual-Based Net Income Is

question 133

Short Answer

Computing operating cash flows by adjusting accrual-based net income is done when the ________ method is used.

---

Definitions:

Fair Value

Fair value is the estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Contingent Consideration

Future payment obligations in a business combination or other arrangements that depend on specific outcomes or achievements.

Goodwill

The intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.

Share Issue Costs

The expenses associated with issuing new shares of stock, including legal, accounting, and underwriting fees.