Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Net income and net cash flow from operations are two different things. Net income is the amount of revenue that exceeds the expenses on a company's income statement, while net cash flow from operations is the amount of cash generated or used by a company's operations. It's possible for a company to have positive net income but negative net cash flow from operations if, for example, it has a lot of non-cash expenses or if it is using cash to purchase inventory or make other investments in the business.

Which of the Following Statements Is Correct