Net cash flow from operations is a borrower's net income expressed in cash rather than on an accrual basis.

Question

Quizplus · Accepted Answer

Net cash flow from operations represents the cash received and paid out by a borrower during a specific period of time, while net income on an accrual basis reflects revenue and expenses irrespective of when the money is received or paid. Therefore, net cash flow from operations is a more accurate measure of a borrower's financial performance in terms of actual cash receipts and expenses.

Net Cash Flow from Operations Is a Borrower's Net Income