Net income calculated on a cash basis is the equivalent
A)to the net increase/(decrease)in cash reported on the statement of cash flows.
B)of cash provided by operating activities reported on the statement of cash flows.
C)of cash provided by financing activities reported on the statement of cash flows.
D)of cash provided by investing activities reported on the statement of cash flows.

Question

Quizplus · Accepted Answer

Net income calculated on a cash basis is equivalent to cash provided by operating activities reported on the statement of cash flows, as this section adjusts net income from the accrual basis to the cash basis by reflecting the cash effects of transactions involved in the company's operating activities.

Net Income Calculated on a Cash Basis Is the Equivalent