Examlex
What is a situational attribution?
Indirect Method
A way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.
Retained Earnings
The portion of net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.
Reported Net Income
The total profit or loss of a company after all expenses and taxes have been subtracted from total revenue, as shown on the income statement.
Direct Method
An approach to preparing the cash flow statement where actual cash inflows and outflows from operational activities are listed.
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