Cash flows from operating activities, as part of the statement of cash flows, include cash transactions that enter into the determination of net income.

Question

Quizplus · Accepted Answer

Cash flows from operating activities represent the cash inflows and outflows directly related to a company's core business activities and are derived from the company's income statement. Therefore, they include cash transactions that enter into the determination of net income.

Cash Flows from Operating Activities, as Part of the Statement