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A manager used her position in the company to develop a new business the company might have pursued on its own.This is a breach of the
Operating Activities
Transactions and events that pertain to the primary business operations, impacting the net income and involving cash flows related to operating expenses and revenues.
Indirect Method
A method for preparing cash flow statements where net income is adjusted for changes in balance sheet items to compute cash from operating activities.
Operating Activities
Transactions related to the primary operations of a business, such as sales revenue and expenses, that affect the cash flow.
Current Assets
Assets that a company expects to convert to cash, sell, or consume within one year or its operating cycle, whichever is longer.
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