Determining net cash provided by operating activities involves analysis of the income statement alone as it is the statement that reflects the amount of cash generated from operations as well as the amount of cash used to conduct the operations.

Question

Quizplus · Accepted Answer

Determining net cash provided by operating activities involves not only the income statement but also changes in working capital accounts (such as accounts receivable, inventory, and accounts payable) from the balance sheet, as these changes impact the cash flow from operations.

Determining Net Cash Provided by Operating Activities Involves Analysis of the Income