If a company's sales were all for cash and it paid all expenses in cash as incurred, then the cash flows from operating activities would be identical to net income.

Question

Quizplus · Accepted Answer

If a company's sales were all for cash and it paid all expenses in cash as incurred, then there would be no adjustments needed to reconcile net income to cash flows from operating activities. Therefore, the cash flows from operating activities would be identical to net income.

If a Company's Sales Were All for Cash and It