Describe the Three Types of Activities Reported on the Statement

question 147

Essay

Describe the three types of activities reported on the statement of cash flows.

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Definitions:

Incidental Damages

Additional costs incurred as a consequence of a breach of contract, beyond the direct damages or loss.

Lost Profits

Lost profits refer to the potential earnings a company or individual was unable to realize due to another party's wrongful acts or breaches of contract.

Defective Performance

The failure to meet the required or expected standards of performance in the execution of a contractual duty or obligation.

Computation of Damages

The process of calculating the amount of money that one party must pay to another as compensation for harm or loss caused by a breach of contract, negligence, or other wrongful act.