Operating income is equal to the cash flow from operations on a cash flow statement.

Question

Quizplus · Accepted Answer

Operating income is an accounting measure of the income earned from a company's normal business operations and is reported on the income statement. The cash flow from operations is a separate line item on the cash flow statement that represents the inflow and outflow of cash generated by the company's operations. While the two measures are related, they are not interchangeable.

Operating Income Is Equal to the Cash Flow from Operations