Aboriginal Businesses Are New and Generally Smaller Than Their Mainstream

question 50

True/False

Aboriginal businesses are new and generally smaller than their mainstream counterparts, but many are multimillion-dollar ventures.

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Definitions:

Direct Method

A way to present the cash flow from operating activities by listing major operating cash receipts and payments, making it easier to understand than the indirect method.

Operating Activities

Day-to-day actions that relate directly to the production, sale, and delivery of a company’s products and services.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions, deferred incomes, and the change in working capital.