Which of the following is a way that the Operating Activity section of the statement of cash flows adjusts Net Income from the balance sheet?

Question

Quizplus · Accepted Answer

The Operating Activity section of the statement of cash flows adjusts Net Income by adding back all non-cash entries related to the firm's operating activities, such as depreciation and amortization expenses. This is done because these expenses do not require the use of cash, and therefore, should not be included in the calculation of a company's true cash position.

Which of the Following Is a Way That the Operating