To arrive at cash flows from operations, it is necessary to convert the income statement from an accrual basis to the cash basis of accounting.

Name: To arrive at cash flows from operations, it is necessary to convert the income statement from an accrual basis to the cash basis of accounting.
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Cash flows from operations are based on cash transactions, so the accrual basis of accounting used to prepare the income statement must be converted to the cash basis to arrive at accurate cash flow estimates.

To Arrive at Cash Flows from Operations, It Is Necessary