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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.
Direct Method
A way of presenting the cash flow statement where major classes of gross cash receipts and cash payments are disclosed, providing insight into specific cash flow activities.
Indirect Method
A financial accounting technique used in cash flow statements to adjust net income for the effects of non-cash transactions.
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