A firm's net income reported on its statement of comprehensive income must equal the operating cash flows on the statement of cash flows.

Question

Quizplus · Accepted Answer

The net income reported on the statement of comprehensive income does not necessarily equal the operating cash flows on the statement of cash flows. This is because there may be non-cash items included in net income, such as depreciation and amortization, that are added back to calculate operating cash flows. Additionally, changes in working capital and other adjustments can also impact the operating cash flows reported on the statement of cash flows.

A Firm's Net Income Reported on Its Statement of Comprehensive