A company reported net income of $950,000. Cash from operations
A)will always be more than $950,000.
B)will always be less than $950,000.
C)will be equal to $950,000.
D)cannot be determined without more information.

Question

Quizplus · Accepted Answer

The question does not provide enough information to determine the cash from operations. Net income is simply the difference between revenue and expenses, and does not necessarily reflect the cash that was actually received or paid out during the period. Cash from operations would need to be calculated separately using additional financial statements such as the statement of cash flows.

A Company Reported Net Income of $950,000