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Indirect Method
A method used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to calculate operating cash flow.
Net Income
The total profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted.
Financing Activities
These are transactions involving the flow of cash between a company and its owners and creditors. It includes issuing debt, repaying debt, stock sales, and stock repurchases.
Operating Activities
Activities that relate directly to the primary business operations of an organization, such as sales, provision of services, manufacturing of goods, etc.
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