__________ Is Commonly Referred to as the Balance Sheet Approach

question 81

Short Answer

__________ is commonly referred to as the balance sheet approach.

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Definitions:

Financing Activities

Transactions a company undertakes to fund its operations and expansions, such as issuing equity or taking on loans.

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting liquidity, investment, and operating activities.

Investing Section

Part of a company's cash flow statement that shows the cash spent on or generated from investment activities, such as buying or selling assets.