Over sufficiently long time periods, the amount of net income equals
A)cash inflows minus cash outflows from operating activities.
B)cash inflows minus cash outflows from operating and investing activities.
C)cash inflows minus cash outflows from operating, investing, and debt servicing activities.
D)cash inflows minus cash outflows from operating and debt servicing activities.
E)cash inflows minus cash outflows from investing and debt servicing activities.

Question

Quizplus · Accepted Answer

Over long periods, net income aligns with cash flows from all activities: operating, investing, and debt servicing, as these encompass all financial transactions affecting a company's cash position.

Over Sufficiently Long Time Periods, the Amount of Net Income