Examlex
Define each of the following mental shortcuts and explain why each may be inaccurate: (1) the availability heuristic; (2) the representativeness heuristic.
Indirect Method
A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash from operating activities.
Net Income
The total earnings of a company after deducting all expenses, taxes, and losses, indicating the profit made during a specific period.
Operating Activities
Activities directly related to the operation of the business, including production, sales, and day-to-day business management.
FASB
The Financial Accounting Standards Board is an independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.
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