The last adjustment to net income includes the gains and losses from investing and financing activities. This reconciliation clearly shows the adjustments from the income statement that result in cash flows from operating activities for the accounting period. This method is easier to use and is widely used in practice.
Cognitive Approach. Cognition refers to mental activity including thinking, remembering, learning and using language. When we apply a cognitive approach to learning and teaching, we focus on theunderstaning of information and concepts. If we are able to understand theconnections between concepts, break down information and rebuild with logicalconnections, then our rention of material and understanding will increase.
Cognitive psychology is also a reductionist approach. This means that all behavior, no matter how complex can be reduced to simple cognitive processes, like memory or perception. Typically cognitive psychologists use the laboratory experiment to study behavior. This is because the cognitive approach is a scientific one. For example, participants will take part in memory tests in strictly controlled conditions. However, the widely used lab experiment can be criticized for lacking ecological validity (a major criticism of cognitive psychology).